Dogwifhat (WIF) Dips: Can It Reclaim $1?
Dogwifhat (WIF) Price Drop and Potential Recovery
Dogwifhat [WIF], the Solana-based memecoin, has seen a recent downturn, dropping 11% in the last 24 hours. This decline has triggered notable activity among large-scale investors.
Despite the dip, WIF is attracting significant whale interest, indicating a possible reversal as traders look to capitalize on discounted prices. Meanwhile, Solana [SOL] is holding ground below the $200 mark.
Whales Accumulate WIF During Dip
According to data from Curb.sol on X, WIF leads in meme token purchases by whales, with approximately $4 million invested during the price decrease. This surpasses Bonk’s [BONK] inflows by twofold. Popcat [POPCAT] and ai16Z [AI16Z] also saw considerable whale interest, contributing to over $8 million in total inflows across the top 16 meme tokens.
Source: Curb.sol/X
Retail Traders Remain Cautious
CryptoQuant data indicates neutral retail activity, suggesting that retail traders typically become active only when WIF trades above $2.
Roadmap to Reclaiming $1
WIF is currently facing resistance around $0.97, with approximately $1.4 million in leveraged short positions concentrated at this level. A further cluster of shorts exists just above the $1 mark, adding to the challenge.
Source: CoinGlass
Conversely, long positions are clustered around the $0.90 level. A drop to this level could trigger buy orders and potentially initiate a reversal.
Clearing the shorts at $0.97 is crucial for WIF to initiate a short squeeze and reclaim the $1 mark.
Technical Analysis Points to Potential Breakout
A crypto analyst highlighted that WIF is consolidating within a triangle pattern on the daily charts. This pattern often signals accumulation, and a bullish breakout could propel dogwifhat towards $2.
Source: TradingView
WIF has been respecting a rising support line since August 3rd, suggesting that the recent price drop may be a normal correction. A break below this support would negate the potential upward movement towards $1.
Sentiment has shifted from fear to neutral following the reaction at the $0.90 support level.
Long-Term Prospects for WIF
Memecoins are often heavily impacted during market corrections. However, dogwifhat has a strong community, boasting 253,590 holders according to Solscan.
WIF faces increasing competition from newer Solana memecoins with advanced utilities. To remain competitive, the Dev Corp has introduced a validator for WIF transactions, aimed at enhancing infrastructure and utility. Codeum provides blockchain security audits that new projects can use for improved trust and transparency.