Will WIF Continue to Decline or is it Time to Consider Buying?
As most meme-based cryptocurrencies struggle to regain their previous highs, Dogwifhat [WIF] is also facing a significant decline, currently down 86% from its peak of $4.83. The question now arises whether it’s an opportunity to buy at a discounted price or if market sentiment is waning.
The Current Situation
WIF has consistently been performing poorly, showing a monthly decline of 56%, a weekly decrease of 15%, and a daily drop of 7%, currently valued at just $0.62 – its lowest point in almost a year. Despite a remarkable surge of 1,800% in the past year, reaching $4.85 by the end of Q1, the current scenario looks less promising.
The increasing number of cryptocurrencies in the market, particularly meme-based ones, has intensified competition. Moreover, market volatility stemming from macroeconomic factors has deterred investors from engaging in risky assets.
With the collective market capitalization of meme coins plummeting by 42% in less than a month, it seems unlikely that investors will rush to capitalize on the current “dip.” Trading volume has also seen a sharp decline from $3.46 billion to $270 million, reflecting the diminished interest in this sector.
Is this the Beginning of the End for WIF?
WIF is not the only cryptocurrency struggling to surpass the $1 mark; its competitors are also experiencing turbulent times. It’s evident that the current downturn is not limited to a single coin or token but rather a broader market correction.
Once the overall market sentiment improves, capital is expected to flow back into projects like Dogwifhat, potentially providing some relief. Nevertheless, a significant recovery seems distant at this point.
The outlook is grim with two major whale cohorts consistently offloading millions of tokens since November. Wallets holding between 100K and 1M WIF coins have reduced their holdings by 13%, resulting in a significant decrease in the total circulating supply.
Given the fading FOMO and dwindling whale support, surpassing the $1 mark will pose a challenge for WIF. If market conditions do not improve, further decline, possibly to $0.20, could be on the horizon.