Whale Dogwifhat (WIF) enters the scene: "Buy dip" to prepare for the long term trend.

Dogwifhat (WIF) has once again tested the important support threshold at the upward trend line around the level of 0.76 USD on August 26. This price zone has repeatedly acted as a "shield" helping this memecoin limit strong pullbacks throughout this year.

On the daily chart, WIF is sending stable signals again. Buyers are actively defending this support level, creating momentum for a notable accumulation.

WIF price chart | Source: TradingView## WIF whales enter the market: "Buy the dip" to prepare for the long-term trend

According to the latest on-chain data, large investors – often referred to as whales – are quietly accumulating long positions around the support zone of 0.76 USD. This is the price zone that WIF has tested multiple times this year and still maintains a solid defensive nature.

Intentional accumulation by whales

The average order size chart from CryptoQuant shows that many large buy orders are continuously appearing in the spot market. This move reflects the confidence of experienced players in the medium to long-term prospects of WIF, rather than just participating in short-term hot rallies.

It is noteworthy that whales often do not "chase prices" during acceleration phases, but rather choose to accumulate during correction or accumulation stages. This strategy often creates a stable foundation, reducing the risk of a "bull trap" and supporting a more sustainable growth cycle in the future.

Source: CryptoQuant### The participation of institutions through futures contracts

Alongside spot accumulation activities, data from CoinGlass shows that open contracts (OI) on WIF futures have steadily increased until August 26. This is a clear signal that institutions and investment funds are establishing positions, expecting WIF to enter a new upward cycle.

An increase in OI often means that institutional capital is flowing into the market, not just limited to short-term speculation but aimed at a longer-term risk management and profit strategy.

When the capital flow in the spot market – where whales accumulate long-term – combines with the expansion of the futures market (futures), the overall confidence of investors in the bullish prospects of WIF will be significantly strengthened. This is an important consensus, as if only one of the two markets gives positive signals, the upward trend is often hard to maintain for a long time.

Source: CoinGlass## The derivatives market signals a slowdown

Although the signals from the spot market (spot) are quite optimistic due to the accumulated buying power from whales, the WIF derivatives market is showing signs of cooling down, indicating a lack of consensus between the two important trading segments.

Liquidity and speculative activity slow down

Data from CryptoQuant indicates that the bubble chart of futures trading volume has significantly narrowed, reflecting a decline in liquidity and trading volume. This suggests that futures traders are reducing their level of participation, becoming more cautious after a previous period of high volatility.

When the derivative volume decreases:

• The market liquidity is less flexible, making it difficult for prices to break out in the short term.
• Price volatility decreases, evidenced by the narrowing of the fluctuation range. This is characteristic of "resting" phases or preparations for a new volatility.
• Speculative sentiment weakens, indicating that hot money is withdrawing, making way for long-term capital ( whales and institutions ).

The divergence between the spot market and futures contracts often leads to a state of tug-of-war:

• The spot market is strongly supported by the accumulation activities of whales, preventing prices from dropping sharply.
• The futures market lacks speculative momentum again, preventing the upward trend from exploding immediately.

In this context, WIF tends to maintain stability around important support-resistance levels, rather than producing a strong breakout. In other words, the price may move sideways to accumulate over a period of time, waiting for consensus to return from both markets.

Source: CryptoQuant## Upcoming prospects of WIF

At the current time, the support zone of 0.76 USD continues to serve as a "critical milestone" for the price structure of WIF. This is not only an important technical support level on the daily chart but also a reference point for market sentiment: buyers see this as an attractive price zone to accumulate, while sellers view it as a target to test strength.

Positive scenario

If WIF continues to hold above the 0.76 USD mark, buying pressure from whales and institutional investors could become an important catalyst to strengthen the upward trajectory. In that case:

• The nearest resistance level is around the zone of 0.82 – 0.85 USD, where the price has previously paused multiple times. A decisive breakout from this area will be the first signal confirming the short-term upward trend.
• The next target zone may aim for 0.92 – 0.95 USD, a strong resistance level associated with the recovery peak in previous rallies.
• If the cash flow continues to increase, especially when the open interest contract volume (OI) expands again, WIF can completely retest the 1 USD mark – both technically and psychologically strong.

In this scenario, positive signals from whales will be the foundation to support a more sustainable growth cycle rather than just short-term "pumps."

Neutral/Negative Scenario

On the contrary, if the trading volume of futures contracts continues to decline, it indicates that short-term speculative force in the derivatives market is no longer strong. At that time:

• WIF may lack the immediate breakout momentum, instead falling into a sideways consolidation state. In this scenario, the fluctuation range can be maintained around the zone of 0.73 – 0.85 USD, reflecting the tug-of-war between accumulated buying pressure and short-term profit-taking.
• If selling pressure increases and buyers fail to successfully defend the 0.76 USD level, WIF risks sliding down to lower support levels, first around 0.7 USD, and further down to the 0.65 – 0.66 USD zone, where strong buying power has previously appeared.

However, even in a correction scenario, the continued accumulation by whales may still limit the deep decline and create a foundational zone for a stronger upward movement in the medium term.

Dogwifhat is currently at an important crossroads: the whale faction is persistently accumulating, but the speculative derivative cash flow is decreasing. The balance between these two factors will determine whether WIF has enough momentum to break through to higher price levels or must undergo a prolonged accumulation phase before returning to a growth trajectory.

Lilly