The WIF price continued its downward trend, reaching its lowest level since July 2, as most Solana meme coins retreated.
Summary
- WIF price has formed a double-top pattern on the daily chart.
- There is a risk it could crash to the year-to-date low.
- Whales are still accumulating while exchange balances have plunged recently.
Dogwifhat (WIF) token pulled back to $0.7885, even as whale accumulation continued and exchange reserves fell. It has dropped by 40% from its highest level this year.
Nansen data shows that the WIF crypto price has crashed despite having some strong fundamentals. Whales have continued to accumulate it in the past few days. They now hold 36.81 million tokens, up from this month’s low of 34 million.
Increased whale purchases are a sign that these investors anticipate that it will rebound once the ongoing crash ends.
Meanwhile, other data show that the supply of WIF tokens on exchanges has continued falling in the past few weeks and is now at its lowest level in over a month. There are now 611 million WIF tokens on exchanges like Binance, Robinhood, Kraken, and Bybit, down from last month’s high of 627 million.
Falling exchange reserves are a sign that investors are moving their coins from exchanges to self-custody, a sign that they intend to hold them for longer.
However, two potential risks could hinder the WIF token price rebound. First, the derivative market shows that demand from traders is waning as the open interest has plunged to $367 million from last month’s high of $643 million.
More data in the futures market show that the weighted funding rate has recently turned negative, signaling that investors anticipate that its future price will be lower than the current one.
WIF price technical analysis
The other major risk facing the WIF crypto is that it has formed a double-top pattern at $1.3195 and a neckline at $0.6387, its lowest on June 22. A double-top pattern is a common bearish reversal pattern.
Dogwifhat price has also dropped below the 50-day Exponential Moving Average, while the Relative Strength Index is pointing downward.
Therefore, the price will likely continue falling, with the next key support level to watch being the neckline at $0.6387, its lowest level on June 22.
A break below that level will signal a potential dive to $0.3057, its lowest point this year. This price coincides with the double-top target, which is estimated by measuring the distance between the top and the neckline, and the same distance from the neckline.
