After peaking at $4.7 in November 2024, the digital currency dogwifhat [WIF] has encountered difficulties in retaining an upward trajectory.
Consequently, this memecoin has exhibited a decline evident across various charts. This downward trend has prompted certain investors, particularly whales, to divest in order to capitalize on the recent surge and avoid potential further losses.
Notable Sale of 1.2M WIF Tokens by Dogwifhat Whale
Reports from Lookonchain indicate that a prominent Dogwifhat whale has transferred all 1.2 million WIF tokens valued at $3.47 million to Coinbase. Acquiring these tokens in January for $393k, the whale has now realized a profit exceeding $3 million.
The increased selling activity reflects a potential lack of confidence in WIF’s future trajectory, given the ongoing decline of this memecoin.
Despite the recent downturn in memecoins over the past week, U.S. cryptocurrency exchanges are preparing for a more favorable regulatory environment. Consequently, Binance U.S. has revealed plans to introduce WIF on its platform. Trading for the WIF/USDT pair is scheduled to commence on December 11th.
The WIF community anticipates that this move will attract new buyers and inject momentum into the memecoin to reverse its current trend.
Impact on WIF Price Trends?
Analysis by CryptoCrypto suggests that Dogwifhat is presently undergoing a corrective phase subsequent to a notable pullback in the preceding week, leading many investors to adopt a bearish stance.
For instance, the sentiment surrounding WIF has turned predominantly negative in recent days, indicating a general pessimism among investors regarding the memecoin.
Negative sentiment typically exerts selling pressure as discouraging opinions dissuade prospective buyers while encouraging existing holders to sell, as exemplified by the aforementioned whale divestment.
This bearish sentiment has been confirmed by a bearish crossover on both the RSI and MACD indicators. Notably, WIF recorded a bearish crossover on its Relative Strength Index (RSI) 48 hours ago, highlighting the prevailing dominance of sellers amidst heightened selling pressure.
Therefore, the recent offloading by a whale represents a broader market trend rather than an isolated incident impacting immediate price movements.
In a corresponding manner, the open interest in Dogwifhat across various exchanges has dwindled from $330 million to $207 million as of the latest report. This decline reflects investors’ sentiments as they progressively close their positions amid a lack of new participants entering the market.
Moreover, a shift in sentiment is discernible among short position holders who currently hold a majority 52% stake, indicating a widespread anticipation of price declines.
It is apparent that bearish forces are currently dominant, and if they persist, WIF could experience further losses, potentially reaching $2.29.
Despite this bearish outlook, the news of Binance U.S. introducing WIF trading could act as a catalyst for the memecoin, garnering increased buying interest from the U.S. market. Should this development attract more buyers, WIF may retest the critical resistance level of $3.4.