A failed bull cycle in a falling wedge raises questions about the chances of Solana meme coin Dogwifhat (WIF) breaking the $2 mark despite a buying spree by whales. Will the uptrend continue?
Meme coins outside the Tron ecosystem continue struggling to find bullish momentum amid broader market volatility. However, the Dogwifhat token shows signs of recovery, stepping back from a crucial resistance level.
Will this step back further deteriorate the WIF market cap, leading to an intense pullback ahead? Let’s find out.
Changing Market Dynamics and WIF
The daily chart shows a declining trend, continuing the broader long-term correction phase in the WIF token price. Forming a falling-wedge pattern, the WIF token has been experiencing a correction phase that has extended for the last five months.
Furthermore, the increasing bearish influence warns of a death cross between the newly formed 200-day EMA and the 50-day EMA.
Currently, WIF is trading at $1.74, with an intraday fall of 1.59%. The bearish reversal undermines the possibility of a double-bottom breakout and forms the third consecutive bearish candle.
The recent double-bottom reversal rally failed to surpass the 23.60% Fibonacci level, coinciding with the $2 psychological mark. Further, with a morning star pattern, the meme coin has dropped by almost 11.59% since the rejection.
This increases the possibility of a death cross in the daily chart. As the bearish trend gains momentum, the next support levels are at $1.60, $1.50, and $1.25. However, in the broader market, the WIF whales are on a buying spree.
WIF Whales on a Buying Spree
In a recent event, within the last 48 hours, multiple whales have been on a buying spree. The largest holder of WIF just accumulated 800,556 WIF tokens at a price of $1.92. Since then, the market has dropped by 8.69%. The whale currently holds 28 million WIF tokens worth $53.23 million.
With the overall average price in the money, the whale has a profit of more than $75 million. In the recent buying spree, he spent $1.54 million USDC tokens. Another whale is following a similar pattern after a long phase of dominance.
The whale deposited 1.25 million WIF tokens on MarginFi to borrow $197,000 USDC tokens. Then, it used the tokens to buy 110,000 WIF tokens. Hence, the whale is holding a leveraged position in the meme coin. At press time, the whale holds 3.3 million WIF tokens worth $5.95 million.
Will WIF Price Surpass $2?
Due to the high supply pressure near the 23.60% Fib level at the $2 mark and the declining EMAs, WIF might struggle to continue bullish. However, the confidence of whales buying more and more WIF tokens paints a bullish image.
At present, the short-term pullback teases a retest of the support levels at $1.60 and $1.50. However, a bounce back for a breakout rally can find the $2 and $2.50.
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