Whale Activity Sparks Dogwifhat (WIF) Market Turmoil Amid Broader Crypto Sell-Off
- Dogwifhat (WIF) drops to $0.70 , the token enters oversold territory after failing to hold $0.80, marking a 12% decline in 24 hours.
- A dormant wallet shifts 6.5M WIF, while a fresh whale accumulates 9.48M WIF, hinting at market shifts.
- Trumps tariffs and declining trading volume put additional pressure on WIFs price action.
- Key support in focus, traders watch $0.70 closely, weighing chances of a rebound or further downside.
The Dogwifhat (WIF) market has been shaken by sudden whale movements, fueling speculation about its future trajectory. As the broader crypto market experiences a downturn, WIF has seen a steep decline, testing critical support levels.
Dogwifhat Dormant Wallet Awakens, Fresh Whale Accumulation
On-chain data from Lookonchain revealed that a wallet inactive for two years recently moved 6.5 million WIF, valued at $5.21 million, from Binance. This unexpected transaction immediately caught the attention of traders, as large transfers often indicate significant market shifts.
Shortly after, Spot On Chain reported another whale accumulation. A fresh wallet, identified as 4FhF5, withdrew 9.48 million WIF (approximately $7.17 million) from Binance. This move suggests strategic accumulation despite the current bearish market sentiment.
Following these whale transactions, Dogwifhat entered oversold territory, plunging to $0.70 after failing to hold the crucial $0.80 support level. The token has suffered a 12% decline in the last 24 hours, reflecting increased selling pressure.
According to Coinglass data, the downtrend is accompanied by a 9.29% decrease in trading volume, now at $977.56 million, and a 12.02% drop in open interest, currently standing at $194.29 million. This sharp decline mirrors the overall market sell-off. On February 3, the total crypto market capitalization fell to $3.07 trillion, marking its lowest level since November 2024.
Trumps Tariffs Add to Market Uncertainty
Adding to the market turmoil, U.S. President Donald Trump signed an executive order on February 1, imposing new tariffs that have sent shockwaves across global financial markets, including cryptocurrencies.
The key measures include 25% tariffs on imports from Canada and Mexico, 10% tariffs on Canadian energy and oil, and 10% tariffs on Chinese imports. In response, Mexico and Canada announced retaliatory tariffs, further increasing economic tensions.
Since the tariff announcement, WIF has lost 38.33% in the past seven days, making traders cautious about its next move. However, analysts are divided on the tokens outlook.
WIF at Crossroads: Key Support at $0.70 as Bulls & Bears Battle
Crypto analyst Valeriya outlined a potential recovery plan, suggesting that Dogwifhat is currently in a key buyer interest zone around $0.70. Her forecast includes a possible liquidation at $0.70, followed by a rebound toward $0.80, with a long-term target between $1.20 and $1.30.
On the other hand, ChainGPT AI Agent issued a bear alert, warning that Dogwifhat has dropped 33% this week, reaching its lowest price since February 2024. The analysis points to increased selling pressure, with traders closing positions. If the downtrend continues, WIF could drop to $0.55, but a potential bounce could push it back to $1.89.
With ongoing whale movements, macroeconomic uncertainties, and conflicting technical signals, traders remain on high alert. The question now is whether WIF can hold its $0.70 support level and stage a comeback or if further downside is inevitable. The coming days will be crucial in determining WIFs next move, will the bulls regain control, or is the market preparing for another leg down?
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Read more: https://www.tronweekly.com/whale-activity-sparks-dogwifhat-wif-turmoil/
Text source: TronWeekly
