Dogwifhat (WIF) Price Plummets Below Key Support, Following Broader Crypto Market Decline

Dogwifhat, one of the largest meme coins on the Solana network, has experienced a significant price drop, falling below the key support level of $2. This decline mirrors the performance of Bitcoin and other Solana meme coins.

Price Drop and Market Analysis

WIF’s price has tumbled to a low of $1.8520, marking a drop of over 61% from its peak in November. The decline is tied to the broader crypto crash, which has seen Bitcoin and most altcoins retreat. The total market cap of these coins fell from $3.6 trillion last week to $3.3 trillion today, as risks in the bond market continued.

Additionally, some investors have taken profits from the recent rally, contributing to the price drop. According to Nansen data, several top WIF investors have begun cashing out, with the leading investor earning $10.8 million in profits and selling $2.4 million worth of his holdings.

Optimism for a Rebound

However, one WIF whale remains optimistic about a rebound once the market stabilizes. According to LookOnChain, the whale purchased 7.25 million WIF tokens valued at $13.34 million on Tuesday, indicating that he expects a recovery in the meme coin space.

The whale also bought other Solana meme coins, including Popcat, Fwog, and Michi, further suggesting optimism for a rebound. Some key points to note about this purchase include:

  • 7.25 million WIF tokens valued at $13.34 million
  • 5.77 million Popcat tokens valued at $3.83 million
  • 4.57 million Fwog tokens valued at $922,000
  • 3.9 million Michi tokens valued at $467,000

Positive Signs for WIF

Data from Nansen shows that more WIF tokens are being moved off exchanges, which is generally seen as a positive sign. The number of tokens held on exchanges dropped to 433.28 million, down 0.32% from the previous week. The total supply of WIF on centralized exchanges has also decreased by 0.17% to 43.22% over the same period.

Additionally, the token recorded an outflow of $24.1 million from centralized exchanges in the past 24 hours, which is ten times higher than the recent average. Tokens leaving exchanges is a good sign, as investors are optimistic that it will bounce back once the ongoing crypto rout ends.

WIF Price Analysis

The daily chart shows that Dogwifhat has been in a strong downtrend since peaking at $4.7870 on Nov. 13. The price has now pulled back to $1.82, an important support level that aligns with the lowest swing point from August last year.

The coin’s 50-day and 100-day moving averages have formed a bearish crossover. It has also formed a bearish flag chart pattern consisting of a long vertical line and a rectangle-like pattern. Additionally, the price chart shows a double-top formation with a peak at $4.78 and a neckline at $1.093, suggesting a potential bearish breakout.

For the latest news and updates on the crypto market, visit Global Crypto News.

Post Views: 0