WIF is confronting one of its most turbulent periods to date, with its market structure, investor confidence, and long-term outlook shaken by a combination of fundamental allegations and severe market erosion.

The crash, compounded by sharp declines in open interest and volatile intraday trading, has pushed the token into a critical zone where recovery depends heavily on sentiment revival and transparent leadership.

Analyst Flags Severe Market Cap Implosion and Team Controversy

According to commentary shared on X, the scale of WIF’s decline is far more dramatic than a typical meme-asset correction. The analyst underscores that WIF’s market capitalization has plunged from $5 billion to around $400 million, a collapse that signals an extraordinary loss of investor confidence.

Such a sharp contraction is rarely driven solely by normal market cycles, instead suggesting panic selling, diminished trust, and possibly the fallout from internal issues within the project.

Source: X

Adding fuel to the downturn, allegations have surfaced from well-followed figure 1000xgirl, who claims the WIF founding team has effectively begun “cashing out.” The accusation implies that the developers are no longer focused on value creation but are instead leaning on paid influencer campaigns, an approach often associated with projects nearing collapse.

Data Shows Slight Stabilization but Deep Damage Remains

Fresh metrics from BraveNewCoin show WIF trading at $0.41, reflecting a modest 1.62% gain over the past 24 hours. Its current market capitalization sits at $408.59 million, aligning almost exactly with the analyst-highlighted crash threshold. Despite the small uptick, these figures represent a dramatic fall from its earlier multibillion-dollar valuation, providing context for the fears circulating through the community.

Source: BraveNewCoin

Trading volume remains relatively elevated at $162.9 million, signaling that while panic has subsided slightly, the asset is still experiencing heavy churn. This volume likely reflects repositioning rather than accumulation, with many traders using rallies to exit positions rather than increase exposure.

The supply figures nearly 999 million WIF in circulation—add further weight, suggesting the market may struggle to generate sufficient demand to offset such a broad base without renewed trust in project leadership.

Signals Show Heavy Selling, Weak Open Interest, and Cautious Sentiment

Technical readings from Open Interest paint a similarly strained picture. The WIF/USD 1-hour chart shows the token falling sharply from 0.52 to 0.38, followed by a period of flat consolidation around 0.41. The pattern reflects a classic post-crash structure: steep declines, brief recovery attempts, and then sideways trading as the market seeks equilibrium. This stabilization is tentative, with recent candles failing to establish a clear direction or reversal signal.

Source: Open Interest

Supporting this view, open interest has dropped steadily, now hovering near 72.868 million. Declining open interest typically reflects traders closing positions, loss of speculative appetite, or hesitation to initiate new trades. In this case, the reduction aligns perfectly with the narrative of evaporating confidence. Even small upticks in open interest are quickly reversed, indicating that any attempts at renewed speculation lack conviction and momentum.

The convergence of flat price action and stagnant open interest paints a picture of indecision rather than recovery. Traders appear cautious, waiting for either a decisive breakdown or a catalyst that could justify re-entry. Without meaningful improvements in sentiment or clear communication from the project team, analysts warn that the burden remains on WIF to demonstrate stability rather than assume it.