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SOL’s Dogwifhat (WIF) Dives Below Key Point: Sell-Off Coming?

DailycoinDailycoin2024/05/23 05:19
By:Dailycoin
  • GameStop-driven meme coin rally is now overshadowed by market correction.
  • Solana-based Dogwifhat reboots above $2.50 despite approaching a sell wall.
  • Raising $682K for The Sphere to wear the hat, the WIF community remains in the dark.

Solana-based meme coin Dogwifhat (WIF) bumped into monthly lows on Sunday afternoon, trading as low as $2.44. Before picking up a small bounce back to $2.70, the hat-wearing dog coin worried investors due to the drop below $2.50 support. This crucial support level decides if WIF breaks above $2.70 or risks falling to $1.60, according to technical crypto analyst Seth Fin.

#Altcoins $WIF down 9% at support at $2.5. If WIF lose this support Next will be around $1.6!

Trade with care, Don't marry your bags. https://t.co/rkMsDFkNnB pic.twitter.com/fYILWz5OCH

— Seth (@seth_fin) May 18, 2024

While last weekend’s negative WIF price trend inspired several Solana whale sell-offs, the canine coin’s sentimental dynamics seem to change quickly. To illustrate, one SOL whale sold off all his 732,481 tokens for $1.85 million, initially buying the WIF coins for $2.18 million. Incurring a deficit of $0.33 million, the whale made a move when WIF was nearly 50% down from its $4.83 all-time peak .

Whales Return

Meanwhile, the blockchain detective agency LookOnChain has spotted a crypto whale to cash out $1.83 million in USD Coin (USDC) to purchase 227,896 Dogwifhat tokens at $2.66, topping up their WIF stash hours later. Currently, the whale holds 372,593.55 WIF tokens at $2.70 and $832.71K USDC, which are still lingering in the wallet.

This whale is still buying $WIF lol

$800k left https://t.co/mV44nBWkdZ pic.twitter.com/Zrmo2HdHnX

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— 🐧 Ethereum Damien ( Memecoin Maxi) 🧢🦈🐱 (@0xDamien) May 20, 2024

As the meme coin department witnessed a double-digit uptick during the hype of rejuvenated GameStop (GME) stock shares, WIF soared to $3.25, unable to claim new monthly heights. As GME retraced 15.55% over the past five days, WIF faces a 7.9% market correction during the same timeframe. As of press time, WIF trades at $2.71 with a 7.3% 24-hour upswing, according to CoinGecko.

The possibility of a further sell-off increases with more WIF traders selling than buying Solana’s stylish hat-wearing dog crypto. Over the past 24 hours, the combined liquidity book has recorded $18.74M in WIF sales, topping the $15.29M bids. On the other hand, Dogwifhat’s technical indicators point to a slightly positive Chaikin Money Flow (CMF) index at 0.05, hinting at renewed interest in the meme coin.

On The Flipside

  • The community behind Dogwifhat previously raised nearly $682K for a promotional campaign for the landmark Las Vegas Sphere.
  • Since the completion of Dogwifhat’s fundraiser campaign, no updates have been given if the hat-wearing initiative will actually take place.

Why This Matters

Solana-based meme currencies have inspired multiple altcoin rallies this year, building a competitive narrative alongside artificial intelligence (AI) and real-world assets (RWAs).

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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