Dogwifhat, the once-high-flying Solana-based meme coin, suffered a brutal week, mirroring a broader crypto market correction and elevating questions in regards to the sustainability of the meme coin craze.
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Meme Coin Mania Meets Market Mayhem
WIF, the token powering Dogwifhat, noticed its value plummet 15% in simply 24 hours. This dramatic drop erased all of the features from a current rebound rally. The sell-off wasn’t remoted to Dogwifhat; your entire crypto market skilled a double-digit tumble, with main altcoins like Ethereum and Cardano feeling the warmth.
Analysts level to a mixture of things behind the downturn, together with renewed considerations about inflation and a current sell-off by the German authorities and Mt. Gox, a defunct cryptocurrency change.
The value of $WIF dropped 15% because the market fell.
A whale deposited 900K $WIF($1.64M) to #Bybit 10 hours in the past, leaving 974K $WIF($1.76M).https://t.co/qJwlxcWy15 pic.twitter.com/amIkvwKfNG
— Lookonchain (@lookonchain) July 4, 2024
The ache for Dogwifhat was additional amplified by a whale of a unique sort: a big investor. LookOnChain, a blockchain whale monitoring company, recognized a serious Solana whale dumping 900,000 WIF tokens in a collection of transactions. This fireplace sale, amounting to roughly $1.64 million, undoubtedly contributed to the downward spiral.
Dogfight On Derivatives: Bulls Trampled, Bears Feast
Whereas the Spot market witnessed a massacre, the WIF derivatives market displayed a curious mixture of exercise. Buying and selling quantity surged by a shocking 25%, propelling Dogwifhat to the coveted title of third most-demanded meme coin behind Dogecoin and Pepe Token. This surge in quantity would possibly recommend elevated curiosity, however a more in-depth look reveals a unique story.
Lurking beneath the floor was a brutal battle between bullish and bearish traders. Greater than $3 million in WIF positions had been liquidated within the final 24 hours. This liquidation primarily focused lengthy positions, that means traders who guess on the worth going up had been pressured to promote at a loss as the worth plummeted.
Whereas some would possibly see the elevated quantity as an indication of potential revival, the liquidation figures paint a starker image – many bulls obtained trampled by the bears feasting available on the market downturn.
A Shopping for Alternative Or A Boneheaded Transfer?
Regardless of the carnage, not everybody has misplaced religion in Dogwifhat. The plummeting value has attracted some opportunistic “Solana whales” who view the present value as a gorgeous entry level. This glimmer of hope hinges on the chance that Dogwifhat can recapture its previous glory.
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In Q1 2024, Dogwifhat was a meme coin darling, driving the wave of the meme coin craze to a $4 billion market cap and a spot within the high 30 international crypto rankings. Nevertheless, the current downturn serves as a stark reminder of the inherent volatility of meme cash, which regularly lack the utility or sturdy fundamentals of established cryptocurrencies.
The way forward for Dogwifhat stays unsure. Whether or not it will possibly claw its means again from the doghouse or fade into obscurity relies on a number of components, together with broader market traits, group assist, and potential developments throughout the Dogwifhat ecosystem.
Featured picture from Shutterstock, chart from TradingView
