This "double barrier" is preventing Dogwifhat (WIF) from returning to the 1 USD mark.

In the last 24 hours, Dogwifhat (WIF) – a prominent memecoin on the Solana network – has fallen over 6%, bringing the price below the important psychological level of 1 USD. This move comes as the price of SOL also trades below the 200 USD mark, causing the entire Solana memecoin ecosystem to enter a short term correction.

However, the decline is not necessarily negative. On the contrary, market data shows that whales are taking advantage of this drop to buy in large volumes, creating expectations for a new reversal of WIF.

Whales spend millions of USD to accumulate WIF

According to data from Curb.sol, WIF is currently leading the ranking of the most purchased meme tokens by whales. Specifically, during this fall, 4 million USD of WIF has been accumulated, double that of Bonk (BONK) – the memecoin in second place.

In addition, Popcat (POPCAT) and ai16Z (AI16Z) have also recorded large capital inflows from whale wallets. In total, the top 16 memecoins on Solana have attracted over 8 million USD in just a short period of time.

This shows that while retail investors are still hesitant, big players have bet heavily on a rebound.

Source: X## Retail investors are still on the sidelines

According to data from CryptoQuant, there is a clear difference between the sentiment of retail investors and whales. Currently, the trading frequency of retail investors remains neutral, with no signs of excitement, indicating that the majority of retail investors are standing by and observing.

Market history shows that retail cash flow only truly explodes when WIF exceeds the 2 USD mark, meaning that the upward trend has been clearly confirmed. This also means that if whales continue to maintain pressure to accumulate in the low price range, the late entry of retail investors could become a powerful catalyst, pushing WIF into a new growth cycle.

What does WIF need to retrieve 1 USD?

According to data from CoinGlass, WIF is currently facing a dense resistance zone with increasing short selling pressure. Specifically, at the level of 0.97 USD, there is about 1.4 million USD in short orders using leverage, while just above the 1 USD threshold, there is another large cluster of short orders, creating a "double barrier" that makes it difficult for WIF to recover.

Source: CoinGlassOn the contrary, buying pressure is quietly forming as Long orders accumulate around 0.9 USD and are ready to trigger if the price returns to this zone, which could create a strong bounce.

Therefore, to reclaim the milestone of 1 USD, WIF needs to break the important barrier at 0.97 USD. If successful, a short squeeze could explode, forcing the short side to buy back to cut losses, thus driving WIF to accelerate more strongly.

Source: TradingViewTechnical analyst Ali Martinez believes that on the daily timeframe, WIF is in an accumulation phase following a triangle pattern, which is often seen as a signal for a strong breakout after a period of tightening volatility. If the positive scenario occurs, WIF's next target could reach the 2 USD region.

In the short term timeframe, this memecoin is still maintaining the support trend line since August 3, indicating that the recent fall of over 11% is likely just a normal technical adjustment rather than a trend reversal. However, the bullish scenario will only remain valid if WIF can hold this support line; once it is broken, the upward outlook will be completely negated.

Long-term outlook

Although short term fluctuations are putting considerable pressure, the WIF community continues to demonstrate strength by maintaining over 253,824 holders, according to data from Solscan. At the same time, the memecoin ecosystem on Solana is becoming increasingly competitive as many new projects are launched with diverse features and utilities, posing significant challenges for WIF in maintaining its position.

To avoid falling behind, Dev Corp – the WIF development team – has introduced a transaction validator, thereby upgrading the infrastructure and adding practical application elements to this memecoin. This could be a strategic move to help WIF break free from the label of just being a memecoin, aiming to expand its use value in the future.

In the short term, despite undergoing a strong fall, WIF is still the focal point for whales, with net buying volume significantly outpacing other memecoins. The support area around 0.9 USD, combined with the current technical pattern, is reinforcing expectations for an early reversal, opening up opportunities to conquer 1 USD and further to 2 USD.

However, to truly explode, WIF needs a more aggressive participation from retail investors, while also triggering a strong Short squeeze. When both of these factors converge, WIF could very well become the next memecoin to set a new peak on the Solana network.

Justin