The past week has been a wild ride for meme coins, with Dogwifhat (WIF) and PEPE taking a nosedive amidst market turmoil. WIF, a popular Solana token, took a staggering 25% hit, plummeting from its weekly high of $3.4. Similarly, fellow Solana meme coin POPCAT suffered a brutal 34% drop, reaching lows not seen since mid-April.
Meanwhile, Ethereum-based PEPE, which enjoyed a brief rally earlier in the week, faced a harsh reality check with an 18.5% sell-off, leaving investors shaken. But the story goes deeper than just market fluctuations. Recent revelations about the actions of major holders, often referred to as “whales,” have fueled fears and cast a spotlight on their influence.
Whales Shedding Weight: WIF ‘s Woes
On-chain data analysis by Lookonchain paints a concerning picture. A whale seemingly panicked, dumping 1.7 million WIF tokens at a loss. They then swapped these tokens for other Solana meme coins, including BONK, in the aftermath of the price drop. This fire sale not only impacted WIF but also triggered a ripple effect, influencing the prices of other meme tokens within the Solana ecosystem.
Related: Whale Dumps Sink PEPE Price: 69% of Trades Cause Drops, Warns Analyst
PEPE’s Price Plunge: A Whale’s Desperate Move?
Spot On Chain adds another layer of intrigue. Their data reveals a multi-signature wallet attempting to stem the bleeding in PEPE by depositing a significant amount of tokens onto the Binance exchange.
This move, however, backfired spectacularly, contributing to a 6% price drop. Furthermore, analysis of this whale’s trading history suggests a pattern of contributing to sharp price swings whenever they trade PEPE.
Investor Uncertainty: A Future of FOMO or Fear?
Meme coin investors are left grappling with significant questions. Can WIF and PEPE recover from these substantial losses? What strategies will major token holders adopt to navigate this volatile market climate? The recent whale activity has sown seeds of doubt, leaving investors unsure if these meme coins represent a potential goldmine or a ticking time bomb. Only time will tell if the market can regain its footing and if these meme coins can rise from the ashes.
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