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Dogwifhat price crashed below the key support at $2 this week, mirroring the performance of Bitcoin and other Solana meme coins.
Dogwifhat ($WIF), one of the largest meme coins on the Solana network, tumbled to a low of $1.8520, marking a drop of over 61% from its peak in November.
The decline in $WIF’s price is tied to the broader crypto crashthat has seen Bitcoin (BTC) 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 marketcontinued.
$WIF also dropped as some investors took profits from the recent rally. Nansen data shows that several top $WIF investors have begun cashing out. The leading investor has earned $10.8 million in profits and sold $2.4 million worth of his holdings. As illustrated below, other top investors have also offloaded a significant portion of their tokens.
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. Additionally, the same investor bought other Solana meme coins, including Popcat, Fwog, and Michi, indicating that he expects a recovery in the meme coin space.
A mysterious whale bought 7.25M $WIF($13.34M), 5.77M $POPCAT($3.83M), 4.57M $FWOG($922K), and 3.9M $michi($467K) today.
— Lookonchain (@lookonchain) January 8, 2025
Address:https://t.co/vBJwiesB3chttps://t.co/qY0DD5sQhE pic.twitter.com/pnAH1D1F1U
Meanwhile, 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. As shown below, 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 since investors are optimistic that it will bounce back once the ongoing crypto rout ends.
$WIF price analysis as it sits at a key support
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. This pattern suggests a potential bearish breakout, with sellers likely targeting the next major support level at $1.093, which is 43% below the current price.