The cryptocurrency market witnessed a significant shakeup this week, with meme coins falling sharply. At the center of this storm lies Dogwifhat (WIF coin), a dog-themed meme coin that experienced a meteoric rise but is now facing a harsh reality check.
WIF coin is on the sale list of whales
Fueled by the recent GameStop (GME) rally, meme coins like WIF have increased in value. However, as the GME stock price fell, there was a domino effect in the meme coin market. Once the darling of the meme coin craze, WIF has seen its price drop over 12% in the last 24 hours and is currently trading at a price point significantly lower than its recent highs.
Analysts point to a combination of factors contributing to this decline. One of the important factors was the actions of the “whales”. According to Lookonchain, whale movements were as follows:
- A whale bought 732,481 WIF ($1.85 million) and 716,344 POPCAT ($281 thousand) tokens 3 days ago.
- This whale bought 732,481 $WIF ($2.18 million) at $2.98 and $716,344 POPCAT ($361k) at $0.5 3 days ago. He lost $336k on $WIF and $80k on $POPCAT in 3 days.
- Another whale sells $1.7 million of $WIF ($4.4 million) at a loss to buy $tremp and $BONK after the WIF price dropped. This caused the price of $tremp and $BONK to increase. Whale spent $25,682 SOL ($5 million) to purchase $1.7 million WIF at $2.94 on March 17.
- Started selling $WIF to buy $tremp and $BONK 10 hours ago after $WIF price dropped.
- So far $1.28 million $WIF ($3.3 million) has been exchanged with $127.16 billion $BONK at $0.00002593, and $410,688 $WIF ($1.06 million) has been exchanged with $966 thousand $tremp at $1.1.
Latest situation in WIF price
Fearing further losses, traders also joined the exit strategy, further accelerating the decline in WIF price. Technical indicators point to a potential support level of $2.50 per WIF token. If this key support level is breached, analysts warn of a potentially devastating decline that could see the price drop to as low as $1.60.
But there is still a glimmer of hope. Unlike whales and short-term traders, derivatives markets have yet to exhibit a similar level of panic. In fact, open interest in WIF futures contracts increased by almost 5% in the last 24 hours. This could be interpreted as a sign of continued confidence from some investors who believe in WIF’s long-term potential. However, these derivative traders could find themselves short in the market if the $2.50 support level falls, potentially exacerbating the decline.
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