Large holders, also known as whales, of the Solana meme coin Dogwifhat (WIF) have offloaded substantial amounts of their holdings. It has potentially catalyzed further declines after a sharp drop in the WIF price this week. Over the past week, approximately $16 million worth of WIF tokens have been sold, prompting speculation about the future trajectory of its value.

Dogwifhat Whales Dump Tokens To Exchanges

According to data from Solscan, a Dogwifhat whale dumped a massive reserve of 5.97 million tokens to Binance today. Moreover, the transaction was worth $12.1 million, which could have worsened the downtrend. Earlier this week, a major whale initiated a massive sell-off, liquidating around $3.5 million worth of WIF within a few hours.

Furthermore, these large-scale selloffs exerted considerable downward pressure on the meme coin’s price. At press time, the WIF price plunged 14.54% to $1.85 in the last 24 hours, trading below the critical $2 support level and settling at $1.85, as reported by CoinMarketCap.

This marks the continuation of a bearish trend that has seen the Dogwifhat meme coin lose 25% in the past week and over 35% in the past month. Moreover, the rapid decline in WIF’s value reflects a broader trend within the cryptocurrency market, where investor enthusiasm for meme coins has been waning.

Meanwhile, the market capitalization of Dogwifhat has dropped by 14.5% to $1.85 billion, positioning it at rank 49 in market cap listings. Despite the price downturn, the trading volume for WIF over the past 24 hours has increased by 7.22%, totaling $390.43 million. This surge in trading activity indicates significant market movements as investors react to the recent sell-offs.

Also Read: Dogwifhat Price Prediction: As Market Sentiment Wanes, Can WIF Defy Trend To $1?

What’s Next For WIF Price?

The selling spree by whales, or large holders, of Dogwifhat has contributed to growing pessimism among traders. Moreover, the drop in price and the substantial offloading of tokens signal a lack of confidence in the meme coin’s future performance. This sentiment is further corroborated by data from Santiment, which shows a downturn in open interest across various exchanges.

The total open interest for WIF has decreased from $180 million to $166.9 million. This reflects a cautious stance among investors who are now liquidating long positions rather than initiating new shorts. In addition, this cautious approach among traders and investors is indicative of a broader shift in sentiment within the digital asset market.

Moreover, the fading interest in speculative investments, particularly meme coins like Dogwifhat, underscores a growing caution towards high-risk assets amid market corrections and increased volatility. The past month has seen Dogwifhat’s valuation drop by more than 35%, a clear indication of the challenges facing the meme coin.

The recent price action and whale behavior suggest that the bearish trend for WIF may continue. The critical $2 support level, which has been breached, is a significant psychological and technical barrier. As the coin trades below this level, further declines could be on the horizon if investor confidence does not return.

According to Coinglass data, the Dogwifhat meme coin has also noted significant long liquidations. In the past 24 hours, $1.38 million WIF longs were liquidated, which could have expedited the latest bearish turn.

Also Read: Dog-Themed Meme Coins Outpace Solana Rivals

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