"Whale Moves $7M in Dogwifhat Amid Price Drop; Long-Term Holders Accumulate"

Crypto analyst and news writer Chandan Gupta, specializing in market analysis using on-chain metrics and industry insights, has been tracking significant developments in the cryptocurrency space. At CoinPedia, Gupta leverages his expertise to identify and present emerging opportunities in the crypto market.

Recently, Gupta reported on the substantial attention the Solana-based meme coin Dogwifhat (WIF) has been receiving despite its continuous price decline. A newly created wallet withdrew 9.47 million WIF tokens worth $6.90 million from Binance, as revealed by the blockchain-based transaction tracker Onchain Lens. This significant withdrawal suggests that the whale might have had insider knowledge about the meme coin, given its falling price and the timing of the transaction.

Moreover, long-term holders and investors have been accumulating WIF, as indicated by Coinglass data. Exchanges have witnessed continuous WIF outflows for the last three days after a period of inflows, with a total outflow of $6.60 million worth of WIF meme coins in the past 48 hours. This massive outflow from exchanges suggests potential accumulation by whales and long-term holders, who might be taking advantage of the current market sentiment and price drop to buy a significant amount of WIF meme coins. This accumulation could create potential buying pressure once the sentiment shifts.

Despite these transactions and recent whale activity, WIF's price remains unchanged, currently trading near $0.72 and having dropped over 8% in the past 24 hours. During the same period, its trading volume declined by 8%, indicating lower participation from traders and investors compared to previous days. This bearish market sentiment and continuous price decline have been attracting notable interest from traders in short positions, with traders holding short positions dominating the market.

Data shows that traders holding long positions are over-leveraged at $0.709, with $1.55 million worth of long positions. Conversely, at $0.752, traders holding short positions are over-leveraged, holding $4.45 million worth of short positions. This massive short position suggests that short sellers are capitalizing on the current market sentiment to liquidate long positions.