WIF price falls, whale buys the dip, CEX reserves fall, risks remain

Dogwifhat price fell below the $2 key support this week, mirroring the performance of Bitcoin and other Solana meme coins.

Dogwifhat (WIF), one of the largest meme coins on the Solana network, fell to $1.8520, marking a decline of over 61% from its November peak.

The decline in WIF price is tied to the broader crypto crash that has caused Bitcoin (BTC) and most altcoins to pull back. The total market value of these coins has fallen from $3.6 trillion last week to $3.3 trillion today due to continued risks in the bond market.

WIF also fell as some investors took profits from the recent rally. Nansen data shows that many top WIF investors have begun cashing out. The leading investor made a profit of $10.8 million and sold assets worth $2.4 million. As shown below, other top investors have also transferred a significant portion of their tokens.

Dogwifhat profit leaders | Source: Nansen

A WIF whale remains optimistic about the recovery once the market stabilizes. According to LookOnChain, the whale purchased 7.25 million WIF tokens worth $13.34 million on Tuesday. Additionally, the same investor also purchased other Solana meme coins, including Popcat, Fwog, and Michi, indicating that he expects a recovery in the meme coin space.

Meanwhile, data from Nansen shows that more WIF tokens are being removed from exchanges, which is generally seen as a positive sign. The number of tokens held on exchanges decreased by 0.32% compared to the previous week, falling to 433.28 million.

Total WIF supply on central exchanges also decreased by 0.17% to 43.22% in the same period. As shown below, the token recorded an outflow of $24.1 million from centralized exchanges in the last 24 hours; this is ten times the recent average.

WIF CEX exits | Source: Nansen

Tokens exiting exchanges is a good sign because investors are optimistic that tokens will bounce back once the ongoing crypto rout ends.

WIF price analysis holds an important support position on the Dogwifhat price chart | Source: crypto.news

The daily chart shows that Dogwifhat has been in a strong downtrend since its peak of $4.7870 on November 13. The price has now fallen back to $1.82, a key support level that is in line with the swing low in August last year.

The coin’s 50-day and 100-day moving averages formed a bearish crossover. It 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 signals a potential downtrend, with sellers targeting the next major support level at $1,093, which is 43% below the current price.