Dogwifhat (WIF) could be preparing for a price decline as the TD Sequential indicator hints at a possible buying opportunity. The latest data presented by crypto trader Ali Martinez shows a buy signal, suggesting a potential price drop.
Buy signal for Dogwifhat
Today, Martinez posted on X a technical indicator, popularly known as TD Sequential, which spotted a buy signal for the Dogwifhat meme coin. Although this indicator hinted a looming price drop soon, this gives a better opportunity for traders to accumulate WIF tokens at greater discounts.
Yesterday, Feb.8, Lookonchain spotted a whale, which had been dormant for two years, awakened and bought 6.5 million WIF worth $5.21 million from Binance. A short time later, SpotOnChain identified another whale acquisition. The whale created a new wallet and withdrew 9.48 million WIF worth $7.17 million from Binance.
These purchases indicate strategic acquisitions despite the current bearish market sentiment. After these whale accumulations, the WIF price dropped to the $0.70 level following its failure to hold its price above the crucial $1.00 and $0.80 support levels.
WIF price analysis
Dogwifhat price has suffered a 56.1% decrease in the past 30 days, reflecting increased selling pressure. The token lost its bullish momentum amid increasing supply in the previous months, which explains why its overall market outlook remains bearish.
Since Dec.9, 2024 (when it traded at a high of $3.89), the meme coin lost strength and has been on a downtrend. The asset is currently trading below the crucial $1.00 support level, hovering at $0.7019 at press time, up 2.1% in the past 24 hours.
Amid the recent heightened volatility, most crypto assets are struggling. On Feb.1, President Trump introduced new taxes on products imported from China, Mexico, and Canada. The announcement unleashed anxiety across global investment markets, including cryptocurrency. Since the announcement, Dogwifhat lost 29.7% in the past week, making traders uncertain about the asset’s price movement.
The token is currently moving in a major buyer interest zone, at around $0.7. However, as indicated by Martinez’s data, WIF is set to experience a further price decline possibly to the $0.5 level. This zone is primed to provide a greater buying opportunity for investors seeking to acquire the token in large-scale numbers, positioning themselves for potential future growth.
