The meme token Dogwifhat (WIF), long considered to be one of the leading projects in the field of cryptocurrencies based on Solana, suffered a sharp decline. Against a backdrop of general market cooling and declining interest in high-risk assets, the coin lost a significant portion of its value, breaking through the so-called 'golden pocket' level, an important Fibonacci zone often considered by investors as a key support.
According to technical analysis, this refers to the Fibonacci zone between 0.618 and 0.65, traditionally considered the 'last resort' for bullish investors. In the case of Dogwifhat, this level was between $1.85 and $1.95, but the token failed to hold above this threshold and, after brief attempts at a rebound, broke through support decisively to the downside. This spawned a series of sell-offs and a wave of panic among short-term investors.
At the time of writing, Dogwifhat is trading around $1.60, down nearly 30% in the past two weeks. From a technical point of view, the next significant level could be the support around $1.30, and if this is also broken, a return to $1.00 cannot be ruled out.
The reasons for the slump are several. Firstly, the global trend of declining interest in meme coins, which in early 2024 saw meteoric rises, often by hundreds of percentage points, unsupported by solid fundamentals. We are currently witnessing a natural correction.
Secondly, the general state of the crypto market exerts pressure: Bitcoin has failed to hold above $65,000, increasing negative sentiment. Investors started taking profits and abandoning riskier assets, including meme tokens.
Big Investors Put Pressure on Despite Community Support
Dogwifhat came under pressure from big holders. According to data from blockchain analysis services, some large wallets have begun actively transferring funds to exchanges in recent days, a signal that most likely indicates an intention to sell. This has fuelled anxiety among small investors, prompting them to liquidate their positions.
Despite the current difficulties, some analysts maintain a moderately positive outlook for the medium term. The project boasts an active community and Solana remains one of the most productive ecosystems, factors that could work in WIF's favour if interest in the market returns.
However, the technical picture remains negative at the moment. The breaking of the 'golden pocket' indicates that recovery could take time and the price could test even lower levels. Investors are advised to act cautiously and monitor the situation closely, especially in view of the US Federal Reserve's decisions, which could affect the general sentiment in the financial markets.
Conclusion: Dogwifhat came under pressure after breaking a critical support. The risk of further declines remains, but this could change as positive sentiment returns to the markets.
