DogWifHat (WIF) bounces off lows with 30% rally after buyers return

DogWifHat (WIF) bounced off its lows, performing a 30% rally on signs that buyers are returning. WIF is trying to break out after a months-long losing streak, as traders rediscover older blue chip memes.

DogWifHat (WIF), one of the top Solana memes, broke out from its lows after over two months of losses. WIF rallied from $0.99 to $1.33 on signs of returning buyers. WIF now has to show it can break its losing trend, after peaking above $4.19 in November.

WIF had a typical 75% drawdown, which has affected even cult-status meme tokens. The token underperformed or wiped out gains for the past three months, while other meme sectors and AI agent tokens rallied. WIF also gained attention after its official X account sent out a message the token’s mascot would appear on the Las Vegas Sphere. The project has hinted at hiring the landmark media spot for months, once again tapping the speculation and publicity effect. The announcement, even if unofficial, sparked renewed buying activity from whales, as well as accumulation of WIF on exchange wallets.

Whales return as buyers, rolling over TRUMP gains

The market also saw a reversal sign as crypto influencer Ansem bought WIF again after a three-month pause. WIF is now the only significant meme holding by Ansem’s known address, though he is sitting on $7.61M USDC. The wallet shows no other notable memes or tokens, and is closely watched for signs of new allocation.

At the same time, WIF is not guaranteed a buying spree, as one of the older whales has started divesting positions with careful selling.

$WIF whale with $11,300,000 unrealized just opened up a dca out for his entire bag $50k+/min

isn’t this supposed to be bullish news? https://t.co/JKGyCcyoMT pic.twitter.com/J7EwUM19ne

— ????? ♰ (unemployment arc) (@retardmode) January 28, 2025

Beyond WIF, Ansem is also testing out small-scale purchases of DEEPFOX, Golova, Roger Ver, and Sonic. Risky tokens and new mints continue to draw attention, though WIF shows blue-chip memes are still a common choice for whales and influencers.

The recent selling invited caution, as the WIF rally could be used as a partial selling opportunity. WIF is yet to show signs of a more sustainable independent breakout. The memecoin is also capable of producing short-term earnings for whales, with one buyer in the past two weeks locking in $4.2M in profits. Another prominent whale, Layercake.sol, divested all WIF, instead choosing to sit on USDC liquidity to move to other assets.

Some whales are also choosing WIF as the roll-over token after taking profits from TRUMP. A recent smart money wallet bought $827K worth of WIF through USDC. WIF buying dominates sell orders on decentralized markets. Not all WIF activity can be tracked, as some of the price discovery is happening through Binance’s order books.

WIF tries to break downward trend

WIF has been a usual rollover token for months, as it combined rapid rallies with crashes. Currently, the token has completed a 10-month stretch of moving between highs and lows, setting up expectations for another bullish stage.

The shift in expectations was also reflected by a rapid increase of open interest, from recent lows of $230M to $315M within hours. Long positions increased to 75% on most centralized exchanges, in expectations of a continued price trend.

WIF mostly relies on centralized markets, with recently active wallets linked to Kraken and Bybit, in addition to the biggest market on Binance. The current market conditions set expectations for WIF to show its cult influence and have its turn after the cooling of the AI agent narrative.

DogWifHat (WIF) still shows signs of being a cult token

One of the key features of WIF is the readiness of its community to hold. WIF has a wide relative distribution, despite the recent concentration on centralized exchanges. The token shows signs of high conviction, based on long-term holder wallets.

WIF is one of the top tokens with a large share of owners holding over $10,000 in their wallets without selling. Based on the metric by crypto influencer Murad Mahmudov, WIF is still in the top 5 tokens with the most dedicated communities. 1.7% of all holders own wallets with more than $10,000 in WIF tokens, surpassing BONK with 0.7%.

WIF has shifted its influence among meme tokens on Solana and all other chains. The asset is still the third-largest on Solana, displaced by Official Trump (TRUMP) as the new top token. For now, WIF is still ahead of Pudgy Penguins (PENGU) and the ever-present FARTCOIN, which is often swapped by whales to tap irrational rallies.

The entire meme token space hovers horizontally with a valuation of $100B, awaiting another switch to the meme narrative.

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