Dogwifhat (WIF) has been on a persistent downtrend for over a month, recording substantial losses. Over the past week alone, WIF has plunged by 36.28%, with analysts warning of further declines. The past 24 hours have reflected a strong bearish sentiment, as selling pressure continues to mount despite notable activity from whales and smart money investors.
Whales and Smart Money Step In
Despite WIF’s prolonged downturn, large investors appear to be positioning themselves for a potential rebound. Whale activity has increased, with one whale purchasing 9.6 million WIF worth approximately $6.9 million from Binance. Historically, such accumulation signals confidence in a price recovery, as whales tend to buy heavily at lower levels in anticipation of a future rally.
Blockchain analytics platform Stalkchain reported that WIF remains among the most purchased tokens in the market over the past 24 hours. The smart money cohort—investors known for their profitable trades—has also acquired WIF worth thousands of dollars during this period. However, despite these encouraging signs, a breakout rally may not be imminent.
Spot Traders Take Profits, Further Dampening Momentum
While whales and smart money have been accumulating, spot traders appear to be driving WIF’s price downward through sustained sell-offs. Exchange netflow data from Coinglass reveals that spot traders offloaded $930.60K worth of WIF in the past day alone. This selling spree follows three consecutive days of buying activity totaling $15.14 million, suggesting a phase of profit-taking rather than a full-fledged bearish shift.
Is a Reversal on the Horizon?
On the charts, WIF has found support at the $0.69 level, triggering a short-term rebound. At the time of writing, the token is trading at $0.74, reflecting an early sign of recovery. The Relative Strength Index (RSI) has entered the oversold region and is now trending upward, indicating a potential shift towards buyer dominance.
If WIF maintains this momentum and breaks out of the oversold zone, a stronger recovery could be in store, setting the stage for higher highs in the near future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Dormant Whale Moves 6.5M WIF: Is Dogwifhat (WIF) Poised for a Major Breakout?
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