Here’s Why The Dogwifhat Price Crashed Below $2 This Week

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As an experienced analyst, I’ve seen my fair share of meme coins coming and going in the crypto market. Dogwifhat (WIF), which once held a promising position as the third largest meme coin by market capitalization, has now crashed below $2, losing over 25% of its value within a week. This decline can be attributed to selling pressures from investors, with more than $16 million worth of WIF tokens sold off in the past week alone.

As a researcher studying the cryptocurrency market, I’ve observed a significant downturn in the value of Dogwifhat (WIF), the meme coin based on the Solana blockchain. This week, its price has dipped below the $2 mark, representing double-digit percentage declines. The decreasing investor interest in this popular meme coin seems to be a contributing factor.

Dogwifhat Crashes 26%

The cost of Dogwifhat is presently at $1.8 due to intense bearish trends in the meme coin market, causing a significant decrease in value. Over the last week, the cryptocurrency’s worth has plummeted by a substantial 25.72%.

The unexpected decrease in value can be explained by the substantial selling pressure from unknown cryptocurrency investors holding WIF tokens, according to recent data from Solscan. Over the last week, approximately $16 million worth of these tokens have been offloaded, with both small and large quantities being sold.

When the investment community repeatedly sells off their Dogwifhat cryptocurrency holdings due to market instability, this action can set off a chain reaction of further sales. Consequently, the value of Dogwifhat may decrease significantly in response to these selling pressures. Given its meme coin nature and high volatility, Dogwifhat is particularly vulnerable to even minor market shifts and sell-offs.

I’ve noticed a concerning trend recently as more and more large-scale investors, or “whales,” have been selling off their WIF tokens. A reputable blockchain analytics firm, Lookonchain, shared this information in a post on X (previously Twitter) on June 22. Specifically, an anonymous whale transferred a staggering sum of 12.66 million WIF tokens, equivalent to around $23.4 million at the current market value, to Binance.

Normally, transferring cryptocurrencies from a wallet to a crypto exchange may indicate an upcoming sale, especially if selling pressure is strong in Dogecoin. Persisting sell-offs could potentially lead Dogecoin’s price to reach new lows.

Starting from early June, Dogwifhat’s trading performance has been subpar, experiencing more drops than most meme coins in the current market following a steep decline of nearly 40%. This cryptocurrency reached its peak price of $3.97 in March, surpassing Pepe (PEPE) at one point and ranking as the third largest meme coin by market capitalization.

From my perspective as a crypto investor, Dogwifhat currently holds the fourth largest position among meme coins with a market capitalization of $1.8 billion, based on data from CoinGecko. Notably, four out of the five biggest meme coins by market cap, including Dogecoin (DOGE), Shiba Inu (SHIB), Pepe, and Floki (FLOKI), are experiencing modest growth. However, I’ve noticed that Dogwifhat is bucking this trend, dipping by 2.13% in the last 24 hours as per CoinMarketCap.

Here’s Why The Dogwifhat Price Crashed Below $2 This Week

What’s Next For WIF? 

If selling pressure continues, the price of WIF may experience further decreases, which could possibly drive the cryptocurrency’s value under $1. The chief executive of CryptoQuant, Ki Young Ju, has shared pessimistic views regarding meme coins in the current market.

Based on my analysis of the altcoin market, I’ve noticed a decline in meme coin dominance as depicted in the price chart showcasing their performance from 2022 to 2024. This trend indicates that investors are likely to transition from speculative gambling towards evaluating the market based on fundamental factors.

Here’s Why The Dogwifhat Price Crashed Below $2 This Week

As a seasoned analyst, I would advise investors to reconsider their investment strategies regarding meme coins. The allure of quick profits in this market may have faded, potentially signaling the end of an era for meme-based cryptocurrencies.

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2024-06-22 20:11