Cryptocurrencies mostly bounced back on Thursday as signs that investors were buying the dip increased. Popcat, a popular Solana meme coin, rose to $0.65, 134% above its lowest point this year, making it one of the best-performing tokens in the market.
WIF, Popcat, and Polkadot are rising
Dogwifhat (WIF) token also rose for three consecutive days, reaching a high of $1.7245, higher than this week’s low of $1.08. Polkadot, a popular layer 1 network, was also up, hitting a high of $4.78.
These price actions had something in common in that they happened after the three tokens formed a hammer pattern on Monday. A hammer is a popular bullish sign comprising a long lower shadow and a small body.
Also, the rebound is happening in a high-volume environment. Data by CoinGecko shows that WIF had a 24-hour volume of over $1.46 billion, higher than other popular meme coins like Pepe, Shiba Inu, and Dogecoin. While it is a smaller token, its volume was higher than that of DOGE and SHIB combined.
Popcat also had a 24-hour volume of $130 million, a substantial figure compared to its market cap of over $600 million. Polkadot had a $300 million volume.
These volume numbers show that some investors are buying the dip, hoping Bitcoin’s broadening wedge pattern works well. In most cases, as happened in March 2020, this wedge pattern is one of the most popular bullish signs in the market. If it works, it means that other altcoins will also bounce back.
Binance inflows are rising
The other sign investors are accumulating is that inflows in Binance, the biggest crypto exchange in the world, are rising. Data shows the company has had a net inflow of $2.4 billion, mainly in Tether (USDT) and USD Coin (USDC). Tether’s market cap has soared to a record high of over $114 billion.
Other exchanges like OKX and Bybit have seen some inflows in the past few days. The same has happened in the spot ETF market, where the spot Bitcoin ETFs have had inflows this year.
One of the investors likely buying the dip is Cumberland, which received 373 million USDT from Tether Treasury and moved it to exchanges like Coinbase, Kraken, and OKX. That is a sign that these investors are buying.
To be clear, there is still a risk that the ongoing Popcat, WIF, and Polkadot price movement is part of a dead cat bounce. Besides, analysts caution that the unwinding of the Japanese yen carry trade will take time and cause more damage in the market.
