Solana memecoin Dogwifhat (WIF) is gaining attention following significant whale accumulations. In the last two weeks, two whale addresses have bought a total of 20.58 million WIF tokens. They are valued at $33.35 million. These purchases have raised hopes of a price recovery even during a market consolidation.

Whale Accumulations Boost Market Optimism

On-chain metrics highlighted two addresses that recently loaded a large number of WIF tokens from Binance and Bybit exchanges. This whale activity has positively influenced the market sentiment since traders and investors expect further price appreciation.

September is known to have a poor market performance. Those whales may be looking to take advantage of ‘buy the dip’ and increase WIF value in the upcoming months.

Despite the volatile performance of the overall cryptocurrency market, experts believe that there will be a positive movement in Q4. Whale activity and the possibility of the Federal Reserve easing could therefore support a positive market environment. Consequently, WIF traders are continuing to become more confident that the token’s price will rise soon.

Dogwifhat (WIF) Technical Analysis Signals a Potential Breakout

The WIF price chart shows a potential breakout from the long-term falling wedge formation. Since April 2024, the meme coin has been on a downward trend. It reached a high of $4.8571 before falling to $1.07. However, the recent price action has indicated the start of a double-bottom reversal pattern. It may lead to a price increase.

The technical indicators including Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are also displaying positive signs for upward movement, which supports the chances of a price breakout. Analysts have predicted that if WIF can maintain its current trend, it could easily break through the $2 and continue rising.

On the 4-hour chart, WIF has emerged from the triangle and has surpassed the 200-day exponential moving average. This breakout has provided more upward pressure, with analysts focusing on the Fibonacci levels of $2.04 and $2.52. Should this trend continue, WIF may easily break through its key resistance levels. Higher resistance is anticipated at $175, a level that if violated would enable the continuation of the bullish trend of WIF.

However, if the price cannot sustain the price above the $1.55 support level. It may open the way for further declines with the next key support at $1.50. A move below $1.50 could pave the way for further selling, with a target in the $1.40 or even the $1.30 region.

Dogwifhat (WIF) Price Trend

At the time of writing, WIF is bearish with prices dropping to $1.55. This is an 8.15% plunge within the last 24 hours. A major decline in trading volume is evident as it stands at 3875% lower which could be attributed to selling pressure or lack of buyer interest at these prices. The initial support for WIF is seen at around $1.55 with the price likely to face resistance at $1.65 if it bounces back.

WIF Derivatives Data | Source: Coinglass

In the derivatives market, WIF has experienced a trading volume decline of 30.08%, falling to $853.26 million. This decline can be attributed to the fact that the traders might have become less aggressive in taking new positions owing to the prevailing market conditions.

Furthermore, WIF’s open interest has gone down by 9.06% to $211.91 million, which may be construed as bearish, as traders may be liquidating their positions instead of opening new ones.

However, there are some traders who are optimistic that the current price fluctuations and other technical aspects of WIF suggest a possible rebound. The ongoing whale accumulation could be the key driver for price rise, only if the buying interest comes back and volume rises again.