Whales are now disposing of Dogwifhat (WIF) coin at a loss. The prices now appear to be struggling ahead of the recent general market pump.
sbfonchain.sol, a known whale, made the moves which have drawn quite some attention and speculation as the mega whale recently offloaded their whole line of WIF coin.
Onchain data reveals that they sold about all its WIF tokens for a substantial 4.08 million USDC in the transaction details. But it did come with a cost.
– Advertisement –
The whale saw a hefty loss of 654,000 USDC. This highlights the extreme volatility of crypto markets and the amount of risk involved in these highly unstable markets.
WIF Coin Ongoing Price Struggle
From Dogwifhat charts and stats, the price of WIF coin has been quite volatile over the last 24 hours with a fluctuating trend. Now at $ 3.09, it displays a small rise of 0.39% over the day.
The market capitalization stands at roughly $3.088 billion which is tantamount to the price. This means that they have a fair market valuation with the price.
– Advertisement –
A high of 53.07% shows increased trading activity. It could also mean higher interest or speculating activity at this price point.
A Bullish Reversal up Ahead?
Technical analysis view of WIF charts indicates the meme coin is trading in a falling wedge pattern. This is considered a bullish pattern.
At the price of breakaway appears to be a possible breakout near the apex of the wedge. This pattern’s typical behavior would create an upward breakout resulting in the price rising.
If the breakout comes to pass, according to the wedge extension (extension of starting width upward from the breakout point) the projected target lines up with the resistance level near $4.16.
Still, we find that the Volume Oscillator is indicating a large decrease in volume compared to the moving average. This presents a value of -41.38%. If it’s a drop, it could signal something is losing momentum which tends to proceed to a breakout.
During a falling wedge formation, we see a drop in volume and if this volume decreases then it could be a sign that a bullish reversal is on its way. This is if buying volume increases as the price approaches the upper trendline.
Chance Of Upward Breakout
From the formation of the falling wedge and accompanying volume trends, the short term is bullish and there’s a higher chance of an upward breakout. A breakout might be considered as a confirmation of traders, looking for increasing volume to enter long positions.
On the other hand, a breach of the support line of the wedge may negate the bullish prospect and further deterioration is possible. this aims at the subsequent support at around $2.78.
What sbfonchain.sol did is not just about selling. They sold the WIF coins after divesting and redirected the capital into the cryptocurrencies CHILLGUY, Fartcoin and UBC buying massive amounts of both coins.
A few of these reflect an investment diversification or hedging attempt against the loss from the WIF coin sale. These tokens behave differently in the market. That implies a notion of approaching investment risk with varying strategies depending on the risk profile of these tokens in the hyper-volatile crypto market.
