GameStop short squeeze ! Which crypto meme to buy !
Why I'm buying $WIF (Dogwifwhat) ? GameStop is +125% at the moment I'm writing (pre market). Given the current short squeeze on GME (GameStop), I decided to position myself on the WIF crypto because :
You almost never start valuing a company or stock with a blank slate.
All too often, your views on a company or stock are formed before you start inputting the numbers into the models and metrics that you use and, not surprisingly, your conclusions tend to reflect your biases.
Professor Aswath Damodaran
Why I'm buying $WIF (Dogwifwhat) ?
GameStop is +125% at the moment I'm writing (pre market).
Given the current short squeeze on GME (GameStop), I decided to position myself on the WIF crypto because :
- It is currently in an accumulation phase.
- Funding rates are positive (which makes the crypto more interesting to short), so I think there's a risk of a short squeeze.
- PEPE is currently leading the way, but has already risen by over 100% in one month.
- So I think it's wiser to position myself on a memecoin that's close to the leaders and in an accumulation phase.
Funding rates impact
The funding rate helps balance the demand between buyers (long positions) and sellers (short positions) of the perpetual contract. If the contract price is higher than the spot price, long traders pay funding to short traders, and vice versa if the contract price is lower.
Short squeeze
A short squeeze occurs when rising prices force traders with short positions to buy back the asset to limit losses, further driving up the price due to increased demand. It leads to sharp price spikes and can pose risks for traders holding short positions. Understanding short squeezes is essential for managing risk in volatile markets.
I've taken a position at $3.06 on X5 leverage for your information.
I'll wait and see, but I'm thinking of selling a little after the ATH, depending on market conditions.
Volatility is the order of the day today and tomorrow with macroeconomic events, so expect volatility (both upwards and downwards), so be careful.
This is my analysis, please DYOR (Do Your Own Analysis) before buying an asset.
