Whale Selloff Pressures dogwifhat Price: Where Is It Heading?

• WIF price traded lower on Saturday, dropping more than 4% in the last 24 hours.
• An early $WIF buyer, EvSTe, has cashed out $4.61 Million, a 235% return on his initial investment.

Over the past few sessions, dogwifhat price experienced a massive drawdown in value as the overall crypto market has turned red. Amidst this, the WIF price has dragged more than 28% in the last seven days and looks bearish on the chart.

Furthermore, the large investors known as whales have continued to cash out their profits and turned to sell their holdings. Typically, when whales sell their holdings, it causes pressure on sales, thus driving prices down.

At press time, dogwifhat price was trading at $1.55, noting a decline of over 4.08% in the last 24 hours. Its market cap has fallen to $1.54 Billion, ranking 68 in the overall crypto market.

A Look at the Whale Activity

In the last 11 hours, a whale, ‘ EvSTe,’ has dumped the dogwifhat coin for USDC. That traded at an average price of $1.549 after selling 3.421 million tokens for $5.3 million worth of USDC.

This astonishing yield originated in a deposit of only $21000 made on December 9, 2023. At the time, the whale bought 3.58 million $WIF, betting on the token during its initial stage.

The whale still owns 198,400 WIF tokens, and liquidated amounts to approximately $311,000 at current prices. This happened after selling most of their stakes.

The remaining tokens could continue being sold. Additionally, the impact on the market could be harmful, especially given the investor’s outsized influence.

This significant profit-taking by a single investor underscored the immense opportunities in the volatile cryptocurrency market. Still, it also highlighted the potential risks associated with large-scale liquidation by early holders.

Impact on the dogwifhat Price Charts?

Following the significant whale activity, the dogwifhat price continued to see a panic selloff and has fallen below the key EMAs. This reflected a bear’s dominance and a sign of a downtrend. Moreover, a death crossover was observed, and the dogwifhat coin could revisit the $1 mark in the coming days.

The MACD indicator showed a bearish crossover and formed red bars on the histogram. That replicated a clear downtrend.

The Relative Strength Index (RSI) curve has fallen to the oversold region and had a reading of 30 at press time. It highlighted a sign of a downtrend, and a further downswing could be seen ahead.

The dogwifhat price action showed a series of lower highs and lower lows and continued showcasing selling pressure. Coinglass’s Spot Inflow/Outflow metrics data indicated that WIF has seen significant inflows of $16.20 Million to exchange in the last three days.

This substantial inflow suggested that whales and long-term holders have loaded their token holdings into exchanges. It suggested distribution.

It often signals a negative sign, indicating a downward momentum ahead. Moreover, the Open Interest (OI) shed over 2.30% to $391.20 Million in the last 24 hours. The immediate support for the dogwifhat price zones were $1.40 and $1.25, whereas the upside hurdles were $1.70 and $2.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.