Here’s the context: After his older brother Sitka (whose totem is the eagle) dies saving Kenai and Denahi from a bear, Denahi receives his totem during a ceremony. The wolf symbolizes – specifically, the wisdom to know that one cannot face everything alone and that there is strength in a pack/family.
In the years that followed, Denahi became the mentor he was always meant to be. He kept the Wolf totem, but now he wore it on the outside of his parka.
Denahi was disappointed. To him, the wolf was a scavenger, a creature that followed the hunter but did not strike the killing blow. And the "eye"? It felt like an accusation. He felt the Spirits were telling him he was weak, that he needed to "watch" rather than act.