SLERF token witnessed a massive whale transaction on Saturday, November 16th, which likely pumped the prices of the token.
According to Lookonchain data in a single transaction, a whale took out $1 million USDC from Coinbase and then paid $1,034,743 USDC to purchase 2.52 million SLERF at $0.41 a piece.
With massive whale transactions, SLERF is trading at a premium of over 60%. At the press time, the coin is trading at $0.4428, being up 66.29% as compared to same time last day.
The market cap of the sloth-based memecoin at the time of writing stands at $218 million, indicating a rise of nearly 63%.
Why is SLERF Token Gaining Popularity?
The change in the crypto diaspora has seen investors prefer memecoins over altcoins at present. Additionally, the popularity of Solana-based crypto coins has skyrocketed in the past couple of months.
SLERF, a meme coin based on Solana, had outperformed all Ethereum-based exchanges in terms of trading volume in just one day of launch, cementing the belief that investors are now looking more towards memecoins.
After Slerf’s developer claimed that they had unintentionally transferred all of the money they had raised to a burn address, the market went crazy and the price went up, causing Slerf’s popularity to soar.
SLERF Price Rise: Will It Sustain?
The price of SLERF memecoin seems to be heavily influenced by the whale transactions. However, if a dumping phenomenon takes place, investors might lose the invested money in the coin.
However, looking at market parameters, with 23 technical analysis indicators indicating optimistic signals and two indicating negative signals, the overall sentiment about SLERF price projection is bullish.
If this trait continues, it is likely that in the coming month, the price for SLERF will increase, being in tandem with present investor expectations.
With an optimistic crypto market and capital flow into riskier assets, market participants are hoping for long bullish trading as shown by the SLERF Fear & Greed Index which is at 80 (Extreme Greed).
Over the previous 30 days, SLERF saw 14.22% price volatility and 14/30 (47%) green days.
Most analysts and investors rely on specific market data to analyze a coin’s price prognosis. One such indicator that is widely used to determine if a cryptocurrency is overbought (above 70) or oversold (below 30) is the Relative Strength Index (RSI) momentum oscillator. The SLERF market is in a neutral position at the moment, as indicated by the RSI reading of 69.03.