Dogwifhat (WIF), one of the biggest meme coins on the Solana system, fell over 72% from its highest level in November to a bottom of $1.3626.
WIF Bear Case: What Is The Reason?
WIF's price drop is linked to the larger cryptocurrency meltdown that has caused Bitcoin (BTC) and the majority of altcoins to fall. Due to ongoing bond market uncertainties, the overall market capitalization of these currencies dropped from $3.6 trillion this past week to $3.3 trillion.
As a few investors profited from the recent increase, WIF also fell. According to Nansen statistics, a number of prominent WIF investors have started to pay out. The top investor traded $2.4 million well worth of his securities and made $10.8 million in gains. Other prominent investors have also sold out a sizable amount of their tokens.
WIF Whale Activity: A Buy Signal?
The price may be stabilized and ready for a possible recovery because of the substantial whale activity on dogwifhat.
However, the fact that a whale purchased 7.25 million WIF tokens, or around $13.34 million, indicates that the asset is highly trusted.
The probability that the dogwifhat price will remain above the vital assistance level of $1.44 is increased by this substantial purchase.
The whale's participation could establish a ceiling price, lowering the possibility of a deeper sell-off, especially given the present trading interactions, where WIF has lately lost major support.
Additionally, this whale activity boosts confidence in markets and liquidity, favourably affecting other investors' mood. Investors might witness a positive resolution in the coming months if the WIF token holds onto its support level as a result of ongoing whale behavior or more market involvement.
Dogwifhat Price Prediction Technical Analysis
In the daily chart of WIFUSD, the recent price showed an extended selling pressure with no sign of a bullish recovery. In that case, investors should closely monitor the near-term price action as a solid bottom can provide an early long opportunity,
In the broader context, a bullish correction with an immediate downside pressure from the 200 day SMA signalled a downside continuation as a Death Cross formation. Moreover, the high volume line remains above the dynamic 50-day EMA, which signalled a confluence selling pressure.
In this context, the downside pressure is likely to extend, where the immediate support is at the 1.0215 level. However, a bullish V-shape recovery with a stable market above the 1.7527 could invalidate the downside pressure and extend the bullish correction towards the 2.6943 high volume line.
