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A previously inactive wallet holding Dogwifhat (WIF) has suddenly come to life, transferring millions in WIF tokens from Binance. According to Lookonchain, this move has fueled speculation among traders and analysts about its potential impact on the WIF market.
Dormant Wallet Awakens With Massive WIF Transfer
As per the on-chain data, the inactive wallet moved 6.5 million WIF, valued at about $5.21 million, from Binance after remaining dormant for two years. The sudden transfer has led to speculation about whether this signals a long-term accumulation or a potential sell-off.
Adding to that, Spot On Chain reported yet another whale, “4FhF5,” started a new wallet and withdrew 9.48 million WIF worth $7.17 million out of Binance. All such significant transactions have been reflective of high-net-worth investors’ increased interest, with investors closely following to gauge its impact.
Dogwifhat (WIF) Price Plunges 12%
The whale movements come at a time when WIF is experiencing significant price volatility. The token has dropped into oversold territory, testing the key $0.80 support level before extending losses to as low as $0.70. As of now, Dogwifhat (WIF) is trading at $0.709, reflecting a 12% decline in the last 24 hours.
According to Coinglass data, trading volume has fallen by 9.29% to $977.56 million, while open interest is down 12.02% at $194.29 million. This decline mirrors the broader market downturn, as the global crypto market cap fell to $3.07 trillion on February 3, the lowest level since November 2024.
Trump’s Tariff Policies Add to Market Pressure
Beyond whale activity and technical trends, macroeconomic factors are playing a role in WIF’s struggles. A new executive order issued by the U.S. Wide-ranging tariffs imposed by President Donald Trump has an impact on international markets, including cryptocurrencies.
On February 1, the order was signed, imposing a 25% tariff on Canadian and Mexican imports, a 10% tariff on Canadian oil and energy, and a 10% tariff on Chinese goods.
Trade partners have retaliated against the move with Canada imposing 25% tariffs on a number of American goods and Mexico’s President Claudia Sheinbaum announcing countermeasures.
As a result, Dogwifhat’s (WIF) decreased by 38.33% in the last seven days. There is, however, a split between analysts about future occurrences, with some forecasting an increase and others issuing warnings of continued plunges.
Analysts Predict a $0.55 or $1.89 Move
While some market analysts predict further losses, others are keeping a close eye on Dogwifhat’s price action and seeing potential for a rebound.
According to analyst Valeriya, Dogwifhat (WIF) had moved into a critical buyer interest zone close to $0.70, indicating the potential for a liquidation event followed by an upward impulse move to retest $0.80. In her opinion, if the market stabilizes, a longer-term target of $1. 20 to $1. 30 is still possible.
Meanwhile, another analyst issued a bearish warning, stating that WIF’s recent drop is a sign of continued selling pressure. The analysis suggests that if the downtrend persists, WIF could fall as low as $0.55, though a strong bounce could see the token rally back to $1.89.
Looking ahead, Changelly’s long-term price forecasting for February 2025 sets an average Dogwifhat (WIF) price at $0.2359, with a variation between $0.1675 and $0.2359. ROI estimation stands at 38.4%, a reflection of high token volatility.
Conclusion
The recent surge in whale activity, combined with macroeconomic pressures and technical weakness, brings Dogwifhat (WIF) to a make-or-break position. Traders are watching whether the token can hold its current support levels or if further declines are imminent. Nevertheless, With nervous market sentiment and overall uncertainty in cryptocurrencies, WIF’s near-term direction is uncertain.
FAQs
Why did a dormant wallet move WIF?
It transferred 6.5M WIF from Binance after two years, sparking speculation.
How did WIF’s price react?
WIF dropped 12% to $0.709, testing key support.
Were there other big WIF moves?
Yes, whale “4FhF5” withdrew 9.48M WIF worth $7.17M.
How do Trump’s tariffs affect WIF?
Market uncertainty led to a 38.33% weekly drop.
What’s next for WIF?
Predictions vary: rebound to $1.30 or drop to $0.55.
Glossary of Key Terms
Whale: A crypto investor holding a large amount of tokens, capable of influencing market prices through big trades.
Liquidity Zone: A price range where high trading activity occurs, often acting as strong support or resistance.
Oversold Territory: A condition where a crypto asset has dropped significantly.
