Dogwifhat (WIF) saw a massive decline over the past seven days, losing steam as it plunged beneath $2.
WIF drops 30%
The Solana-based meme crypto changes hands at $1.78 during this publication.
Dogwifhat plummeted from the 7-day high of $2.6329, losing 30% of its value in a week.
WIF 30D Chart on Coinmarketcap
The bearish move emerges as the dog-themed token experiences notable downward pressure from prevalent market conditions.
Meanwhile, the magnified liquidations from WIF holders catalyzed the double-digit loss.
Solscan data shows Dogwifhat investors have offloaded assets worth over $16 million within the past week.
Investor-induced selling pressure leads to significant declines in the token’s market value.
Memecoin’s speculative and volatile nature makes it vulnerable to crashes amid such holder liquidations.
Lookonchain reported that whales are selling their WIF holdings.
An anonymous wallet deposited coins worth $23.4 million (12.66M WIF tokens) to Binance.
A whale deposited 12.66M $WIF($23.4M) to #Binance in the past 2 days. pic.twitter.com/Fc6WayMjAO
— Lookonchain (@lookonchain) June 22, 2024
Token movements from wallets to crypto exchanges often indicate imminent sell-offs.
Persistent selling pressure will see WIF sliding further in the upcoming sessions.
Dongwifhat has underperformed (compared to other popular meme cryptos) in June, losing 40.80% on its monthly chart.
WIF climbed to all-time highs near $4 in March, surpassing PEPE in market cap (at some point).
Dogwifhat has a market cap of $1.78 billion at press time, ranking as 4th largest meme token by value.
Pepe, Shiba Inu, and Dogecoin displayed gains on the 24-hr timeframe, while WIF extended its downward move with a 0.27% 24-hour dip.
Risk-off sentiment in the meme coin market
Kaiko data shows investors consider themed assets relatively risky, with hiked (over 2bp) bid-ask spreads.
That comes despite increased liquidity in the meme assets sector.
While heightened liquidity translates to tighter bid-ask spreads, the narrative differs with themed digital tokens.
Record-high liquidity makes it easier to trade meme coins.
Kaiko revealed the combined liquidity for DOGE, SHIB, PEPE, BONK, WIF, FLOKI, MEME, BABYDOGE, GROK, HarryPotterObamaSonic, and JarryPotterObamaSonic10INU, recently surged to $128 million.
That means investors can execute massive orders (smoothly) at stable prices.
Such sentiments show investors still consider meme cryptos risky due to massive volatility despite heightened liquidity provision by market makers.
That will likely trigger near-term declines in themed digital tokens.
Moreover, CryptoQuant’s CEO Ki Young Ju stated that meme token dominance in the crypto space has begun to dwindle.
Memecoin dominance in alt markets is declining.
CT would be shifting from gambling to focusing on fundamentals, similar to a few years ago.
Pack it up lads, it’s over. pic.twitter.com/H5d81mRIJB
— Ki Young Ju (@ki_young_ju) June 19, 2024
He added that trends between 2022 and 2024 show investors will finally switch from gambling to market fundamentals.
Ju advised investors to refrain from dog-themed cryptocurrencies as they have reached the end of the road.
WIF price forecast
Dogwifhat demonstrates bearishness as it hovers below the vital $2 price mark.
Whale dump, risk-off sentiments, meme assets’ waning dominance, and Bitcoin’s bearishness below $65K could see WIF plunging below $1.
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