An early Dogwifhat (WIF) investor has cashed in on massive profits, offloading millions of tokens and sparking market concerns about the token’s price stability.
The whale, known by the alias “EvSTe,” has realized a staggering $4.61 million in profits, achieving a 235% return on their initial investment in just over 13 months.
The move has raised questions about the short-term trajectory of WIF as the market reacts to this substantial sell-off.
$4.61 Million Profit from a Modest Start
In the past 11 hours, whale “EvSTe” sold 3.421 million WIF tokens for $5.3 million in USD Coin (USDC) at an average price of $1.549 per token.
This incredible return stems from an initial investment of just $21,000, made on December 9, 2023.
At the time, the whale purchased 3.58 million WIF, taking a chance on the token in its early stages.
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After liquidating most of their holdings, the Whale still retains 198,400 WIF tokens, valued at approximately $311,000 at current price.
The continued sell-off of these remaining tokens could further affect the market’s stability, especially given the investor’s outsized influence.
This significant profit-taking by a single investor underscores the immense opportunities in the volatile cryptocurrency market.
Still, it also highlights the potential risks associated with large-scale liquidation by early holders.
Market Reacts: dogwifhat Price Slips 1%
The broader WIF market has shown a muted but noticeable reaction to the news of the whale’s sell-off.
Over the past 24 hours, the dogwifhat price has slipped by 1%, with its price now hovering at $1.59.
Market participants appear cautious, as large sell-offs often lead to increased volatility and downward pressure on prices.
WIF’s trading volume has remained strong, with $519.56 million exchanged over the past day, representing 32.78% of its market capitalization.
The token’s market cap currently stands at $1.58 billion, supported by a fully diluted valuation (FDV) of the same amount.
With its circulating supply of 998.84 million tokens, dogwifhat coin has shown resilience despite the selling pressure from one of its largest holders.
However, this resilience is tested as the market digests the news of the whale’s continued liquidation.
Should further sell-offs occur, prices may face additional downward pressure in the short term.
Technical Analysis: Potential Support at $1.55
From a technical standpoint, WIF price charts reflect a clear volatility pattern over the past week. Intraday movements have seen the token’s price fluctuate between $1.55 and $1.60.
The TradingView hourly chart highlights a downtrend that began earlier in the week, suggesting selling pressure that coincides with the whale’s liquidation.
The price briefly tested support near $1.55, which may act as a critical floor if further selling continues.
Volume oscillators indicate waning momentum, with trading activity potentially slowing as the token consolidates around its current price levels.
If WIF can maintain this support, it may avoid a sharper correction. However, should the whales continue to sell their remaining tokens, the $1.55 level could be breached, leading to a potential slide toward lower support zones.
