Date: Wed, Jan 29, 2025, 04:37 AM GMT
The cryptocurrency market has been highly volatile in recent weeks, with Solana-based memecoins like Dogwifhat (WIF) and Popcat (POPCAT) facing sharp corrections. Over the past 60 days, WIF has dropped more than 60%, while POPCAT plunged by 72%, highlighting the risks and price swings typical in the memecoin sector.
However, despite the ongoing turbulence, WIF has managed to hold a crucial support level at $0.97 and has since rebounded by 6%, now trading at $1.25.
Whale Buying
As WIF corrected, whale activity surged, suggesting that some large investors see value at current levels. According to on-chain data from Lookonchain, the memecoin trader Ansem—has resumed buying WIF after a three-month hiatus.
Just two hours ago, a wallet linked to Ansem spent 1.2 million USDC to purchase 915,828 WIF at $1.31. This suggests that experienced traders may be betting on a potential rebound, further reinforcing the importance of this support level.
Is the Bottom In?
According to @Bluntz_Capital, a well-known crypto trader and chart analyst, Dogwifhat (WIF) may have found its bottom after completing a major A wave correction. While the bear market lasted longer than expected, early signs of recovery are emerging on lower timeframes.
However, he cautions that it’s still early, as a full five-wave rise from the lows has yet to form, but there’s a decent chance that one is beginning to develop.
Chart Breakdown:
- Wave Structure: The chart suggests WIF may have completed a corrective ABC pattern, with the C wave potentially marking the bottom.
- RSI Levels: The Relative Strength Index (RSI) sits at 40, indicating that WIF is near oversold territory, which could support a potential reversal.
What’s Next for WIF?
With whale buying increasing and technical indicators suggesting a possible reversal, the next key test for WIF will be whether it can break above short-term resistance levels. If buyers continue to step in, WIF could aim for a recovery toward $1.50 and beyond.
However, if bearish pressure resumes, the $0.97 support will be critical to hold—a break below this level could trigger further downside toward $0.80 or lower.
For now, all eyes remain on whale activity, broader market sentiment, and Bitcoin’s price movements, which will likely influence WIF’s next big move.
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