Solana meme coin, Dogwifhat (WIF), crashed below $2 this week, witnessing a double-digit decline as investor interest in the popular meme coin begins to wane.
Dogwifhat crash 26%
I Dogwifhat price currently trading at $1.8 as the doggy-themed meme coin continues to experience significant bearish pressure from prevailing market volatility. The amount of cryptocurrency it has crashed hardhas dropped a whopping 25.72% in the past seven days.
The reason for this unexpected decline was due to recent selling pressure from WIF investors. The data from Solscan revealed that more than 16 million WIF tokens were sold by anonymous cryptocurrency investors last week. This includes small amounts of tokens and large sums of hundreds of thousands of WIF coins.
Often, when the cryptocurrency experiences continuous liquidation from investors, it creates selling pressures, which leads to decrease in its market value. In the context of Dogwifhat being a meme coin, its price is highly volatile and predictable, making it very susceptible to small market changes and sales.
Unfortunately, many whales are beginning to sell WIF token. Blockchain analytics platform, Lookonchain, unveiled on X (formerly Twitter) posted on June 22, that an anonymous whale deposited 12.66 million WIF tokens, worth $23.4 million to Binance.
In general, transactions involving the transfer of coins from a wallet to a crypto exchange often indicate the possibility of an imminent sale. If selling pressures continue on Dogwifhat, the popular cryptocurrency could see it price falling continuously to new lows.
Since the beginning of June, Dogwifhat performance has been poor, recording more declines than most meme coins in the market after crashing by nearly 40% last month. Cryptocurrency first it went up of $3.97 in March, flipped Pepe (PEPE) at some point to become the third largest meme coin with market money.
As of writing, Dogwifhat ranks as the fourth largest meme coin, with a market capitalization of $1.8 billion, according to CoinGecko. Four of the top five meme characters by market capitalization include Dogecoin (DOGE), Shiba Inu (SHIB), Pepe and Floki (FLOKI) see small gains. However, Dogwifhat continues its decline, down 2.13% in the last 24 hours, according to CoinMarketCap.
What’s Next for WIF?
If the selling pressures continue, the WIF price could witness further declines that could weigh on the cryptocurrency price under $1. Founder and CEO of CryptoQuant, Ki Young Ju it revealed a bearish sentiment for meme coins in the market.
According to Ju, the dominance of the meme character in the altcoin market has begun to decline. He shared a price chart showing the market performance of meme coins from 2022 to 2024, highlighting what has revealed that investors will finally start to move from gambling to focusing on market fundamentals.
Urges investors to leave the meme coin marketindicating that the era of easy profits from meme-based cryptocurrencies may be over.
Featured image from sad and useless comics, chart from TradingView
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