- Whale activity highlighted market uncertainty as social volume and sentiment traced bearish trends
- Technical indicators and liquidation data confirmed persistent selling pressure and oversold market conditions
Whale activities in the Dogwifhat [WIF] market continue to dominate headlines, as a prominent player recently withdrew $20.77M worth of WIF at an average price of $1.73 – Incurring a significant $3.27M loss.
However, shortly after, this whale redeposited $17.5M back to Binance, raising questions about their strategic intentions. At press time, WIF was trading at $1.45, following a sharp 6.58% decline in the last 24 hours.
This combination of significant transactions and a declining price underlines the growing uncertainty surrounding WIF’s market performance.
WIF social volume analysis reveals fading enthusiasm
The social volume for WIF, a critical measure of community interest, has significantly declined lately. At press time, the metric recorded just 24 mentions, marking a stark drop from its November peak of over 200 mentions.
This decline highlighted waning interest and participation from traders and investors. Consequently, this decline in social engagement could hinder WIF’s ability to attract fresh momentum and sustain trading activity in the short term.
Source: Santiment
Sentiment trends underline cautious trader behavior
The weighted sentiment for WIF indicated a notable shift towards caution among traders. On 13 January, the metric registered a value of -0.473, signaling bearish sentiment. This marked a sharp contrast to previous sentiment peaks exceeding 6.5 during periods of high volatility.
Additionally, the sustained negativity in sentiment suggested traders remain wary of entering new positions, potentially limiting upward price movement in the near term. Therefore, the sentiment trends alluded to growing skepticism within the market.
Source: Santiment
Technical indicators point to a bearish trend
From a technical perspective, WIF’s current trajectory remains bearish. The Parabolic SAR indicated resistance around $1.86, and the RSI had dropped to 28.67 – Signaling oversold conditions.
Furthermore, the 24-hour price drop to $1.45 confirmed sustained selling pressure. Therefore, while oversold conditions may attract opportunistic buyers, the broader technical picture suggested that the downtrend could persist without a significant catalyst to reverse momentum.
Source: TradingView
WIF liquidations reveal dominance of long positions
Finally, liquidation data highlighted the risk imbalance in the WIF market, with $3.94M in long positions liquidated compared to $241K in shorts. This disparity underscored the sustained bullish expectations among traders, despite recent price declines.
However, the ongoing price slide suggested that many long positions remain vulnerable to further liquidations, increasing the likelihood of more downward pressure. Consequently, the liquidation trends reinforced the need for cautious trading strategies in the current environment.
Source: Coinglass
Read dogwifhat’s [WIF] Price Prediction 2024–2025
WIF’s market faces significant challenges, with bearish technicals, declining sentiment, and reduced social engagement creating a difficult environment. While the whale’s redeposit raised hopes of strategic positioning, the broader market indicators pointed to a continuation of the downtrend.
Therefore, unless key metrics like sentiment and social volume improve, WIF may be poised for further losses in the short term.
