- Solana’s Key Player Cashed Out $1.64 Million Worth of Dogwifhat to Bybit
- WIF, which fell to its lowest level in three months, lost more than 50% of its value in 30 days.
- Despite the popularity of derivatives, the decline in WIF flows suggests that volatility could increase.
As the general cryptocurrency markets experienced double-digit losses on Friday, the meme coin sector was one of the sectors that suffered the biggest losses. One such coin that took a significant hit was Solana-based Dogwifhat (WIF), which erased gains from the recent rally, falling by up to 15% in the last 24 hours.
This caused a bit of panic among some of the big investors in Dogwifhat (WIF), as blockchain whale tracking agency LookOnChain spotted a massive sell-off. Late on July 3, 2024, Solana (SOL) whales sold off 900,000 Dogwifhat (WIF) tokens in three consecutive transactions.
This major player who invested 900K Dogwifhat (WIF) on Bybit potentially made $1.64 million by selling these digital assets on the popular centralized exchange. Further investigation reveals DailycoinThe aforementioned Solana whale was found to still hold 974,047 Dogwifhat (WIF) tokens in his on-chain wallet, currently valued at $1,577,956.
Dogwifhat falls to 3-month low
With the current market sentiment heavily depressed by the German government and Mt. Gox selloff, crypto bears failed to stop WIF from posting double-digit losses to revert to the $1.60 support level, which was previously seen in early March 2024, later pushing WIF to an all-time high of $4.83 on March 31, 2024.
This time, Dogwifhat (WIF) fell even further, dropping to $1.50 from its daily low and later recovering to $1.70. Meanwhile, the selling pressure on WIF continues to appear in the spot market, with a $700K gap between the buys of Dogwifhat (WIF) and the sells of WIF executed in the last 24 hours.
WIF positions worth over $3 million liquidated
On the derivatives side, long holders of Dogwifhat (WIF) were swept by the bears with a daily liquidation of $2.39 million. The last 24-hour time frame shows that a whopping $3.09 million was liquidated as short sellers bid farewell to $697.5K in the derivatives market. This occurred despite a downtrend that has been reducing the market value of WIF since July 1, 2024.
In contrast, Dogwifhat (WIF)’s total derivatives volume rose 28% to $2.08 billion over the past 24 hours, making WIF the third most in-demand meme coin on the market, behind Dogecoin (DOGE) and Pepe Token (PEPE).
However, WIF’s fund flow is still negative at -0.16 as measured by Chaikin Money Flow (CMF). With a ratio below 0, this indicator indicates a decrease in interest in the token, as seen in the recent crypto whale retreat.
On the other side
- Most major capitalization altcoins have seen double-digit declines due to market sell-offs, but some SOL whales are see Dogwifhat’s plunge to $1.50 support level is a favorable entry point.
Why this matters
Solana’s meme coin contributed to the most profitable cryptocurrency sector in Q1 2024, while Dogwifhat gained popularity as WIF reached a market cap of $4 billion and entered the top 30 of the global cryptocurrency rankings.
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