Solana meme coin, Dogwifhat (WIF), has crashed beneath $2 this week, witnessing double-digit declines as investor curiosity within the widespread meme coin begins to wane.
Dogwifhat Crashes 26%
The price of Dogwifhat is presently buying and selling at $1.8 because the doggy-themed meme coin continues to expertise huge bearish strain from prevailing market volatility. The worth of the cryptocurrency has crashed massively, falling by a whopping 25.72% over the previous seven days.
The rationale for this sudden decline has been attributed to the latest promoting pressures from WIF traders. Information from Solscan has revealed that greater than $16 million WIF tokens have been bought off by nameless cryptocurrency traders over the previous week. This contains small quantities of tokens and huge sums of lots of of hundreds of WIF cash.
Sometimes, when a cryptocurrency experiences steady liquidations from traders, it triggers promoting pressures, which ends up in a decline in its market worth. Within the context of Dogwifhat which is a meme coin, its price is extremely risky and speculative, making it extraordinarily vulnerable to minor market adjustments and sell-offs.
Sadly, extra whales are starting to unload their WIF token. Blockchain analytics platform, Lookonchain, disclosed in an X (previously Twitter) submit on June 22, that an nameless whale deposited an astonishing 12.66 million WIF tokens, valued at $23.4 million to Binance.
Usually, a transaction that includes shifting cash from a pockets to a crypto trade typically alerts the potential of an imminent sell-off. If promoting pressures persist in Dogwifhat, the favored cryptocurrency may see its price falling additional to new lows.
For the reason that starting of June, Dogwifhat’s efficiency has been poor, recording extra declines than most meme cash out there after crashing by virtually 40% over the previous month. The cryptocurrency beforehand rose to an all-time excessive of $3.97 in March, flipping Pepe (PEPE) in some unspecified time in the future to develop into the third largest meme coin by market capitalization.
As of writing, Dogwifhat ranks because the fourth largest meme coin, with a market capitalization of $1.8 billion, in keeping with CoinGecko. 4 out of the highest 5 largest meme cash by market capitalization together with Dogecoin (DOGE), Shiba Inu (SHIB), Pepe and Floki (FLOKI) are witnessing slight good points. Nonetheless, Dogwifhat continues on its decline pattern, dropping by 2.13% within the final 24 hours, in keeping with CoinMarketCap.
What’s Subsequent For WIF?
If promoting pressures persist, WIF’s price may witness extra declines that might doubtlessly push the cryptocurrency’s price beneath $1. The founder and CEO of CryptoQuant, Ki Younger Ju has expressed bearish sentiment for meme cash out there.
In keeping with Ju, the meme coin dominance within the altcoin market has begun to wane. He shared a price chart depicting the market efficiency of meme cash from 2022 to 2024, highlighting that exposed that traders will ultimately start to shift from playing to focusing available on the market’s fundamentals.
He urges traders to go away the meme coin market, indicating that the period of creating straightforward earnings from meme-based cryptocurrencies may be over.
Featured picture from Unhappy and ineffective humour, chart from TradingView