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Dogwifhat Whales Unload $16 Million Token Amid 24% Weekly Drop, Will WIF Price Drop Further?
Large keepers, also known as whales, of the Solana meme coin Dogwifhat (WIF) have sold significant amounts of their holdings. It has potentially catalyzed further declines following the sharp decline in WIF price this week. Around $16 million worth of WIF tokens have been sold in the past week, sparking speculation about the future trajectory of its value.
Dogwifhat whales dump tokens on exchanges
According to data from Solscan, today a Dogwifhat whale dumped a huge reserve of 5.97 million tokens on Binance. Furthermore, the transaction was worth $12.1 million, which could have worsened the downtrend. Earlier this week, a large whale initiated a massive sell-off, liquidating approximately $3.5 million worth of WIF in just a few hours.
Furthermore, these large-scale sell-offs have put significant downward pressure on the price of the meme coin. At press time, the WIF price It tumbled 14.54% to $1.85 over the past 24 hours, trading below the critical $2 support level and settling at $1.85, as reported by CoinMarketCap.
This marks the continuation of a bearish trend that has seen the Dogwifhat meme coin lose 25% in the last week and more than 35% in the last month. Furthermore, the rapid decline in the value of WIF reflects a broader trend within the cryptocurrency market, where investor enthusiasm for meme coins is waning.
Meanwhile, Dogwifhat’s market capitalization fell 14.5% to $1.85 billion, placing it 49th in the market capitalization rankings. Despite the price decline, trading volume for WIF in the past 24 hours increased by 7.22%, totaling $390.43 million. This increase in trading activity indicates significant market movements as investors react to the recent sell-off.
Read also: Dogwifhat Price Prediction: As Market Sentiment Declines, Can WIF Challenge the $1 Trend?
What is the outlook for WIF pricing?
The rush to sell by whales, or large holders, of Dogwifhat has contributed to increased pessimism among traders. Additionally, the price drop and substantial token dumping signal a lack of confidence in the future performance of the meme coin. This sentiment is further corroborated by data from Santiment, which shows a decline in open interest across various trades.
Total open interest for WIF decreased from $180 million to $166.9 million. This reflects a cautious attitude among investors who are now liquidating long positions rather than opening new short positions. Furthermore, this cautious approach among traders and investors is indicative of a broader shift in sentiment within the digital asset market.
Furthermore, interest in speculative investments, particularly meme coins, is waning Dogwifhat, highlights growing caution towards high-risk assets in a context of market corrections and increased volatility. Last month saw Dogwifhat’s valuation drop by more than 35%, a clear indication of the challenges facing the meme coin.
Recent price action and whale behavior suggest that the bearish trend for WIF may continue. The critical support level of $2, which has been breached, represents a significant psychological and technical barrier. As the currency trades below this level, further declines could be on the horizon if investor confidence does not return.
Second Coinglass data, the Dogwifhat meme coin has also noticed significant and long liquidations. $1.38 million of WIF longs were liquidated in the past 24 hours, which could have accelerated the latest bearish turn.
Read also: Dog-themed meme coins outperform Solana’s rivals
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