The WIF cryptocurrency has been experiencing a downward trajectory for more than a month now, marking significant declines. Within the previous week alone, it registered a 36.28% plunge, indicating the possibility of further decreases in value.
The recent 24-hour period demonstrated the prevailing bearish sentiment in the market, as the selling pressure intensified despite the participation of whales and institutional trading entities. Notably, data from CryptoCrypto pointed towards spot traders as potential contributors to the decline in WIF prices through their selling activities.
Efforts by Large Investors and Institutional Traders to Support WIF Prices
Significant movements have been observed from whales, who hold notable portions of WIF, and institutional traders known for executing profitable transactions.
In a recent development, a whale bought 9.6 million worth of WIF tokens valued at $6.9 million from the Binance exchange. Such acquisitions are typically viewed as optimistic signs, as whales tend to amass WIF at lower price levels in anticipation of a potential price upsurge.
According to Stalkchain, WIF has maintained its status as one of the most actively traded tokens in the market over the past 24 hours. Institutional traders have acquired thousands of dollars’ worth of WIF during this period.
Despite the active participation of whales and institutional traders, there remains a likelihood of a delay in the projected market rally.
Profit-Taking Behavior – Spot Traders Shedding WIF Holdings
While whales have been accumulating WIF tokens, spot traders across various cryptocurrency exchanges have engaged in selling activities following several consecutive days of buying.
As per exchange netflow data from Coinglass, spot traders collectively offloaded WIF tokens worth $930.60k within the last 24 hours.
This selling trend came after three continuous days of purchasing WIF tokens valued at $15.14 million. This behavior hints at minor profit-taking maneuvers before a potential sustained upward movement.
Anticipating Higher Price Levels
Technical analysis suggests a potential rebound to higher price levels as WIF approached a crucial support level at $0.69. This triggered a notable upside momentum, with the cryptocurrency trading at $0.74 currently.
This upward momentum is supported by the Relative Strength Index (RSI) displaying oversold conditions. With an upward trend, it signals ongoing buying interest in the market.
The oversold territory typically indicates fatigue among sellers and dominance by buyers. If WIF continues on an upward trajectory and exits this region, it would confirm renewed buying pressure, paving the way for establishing higher price peaks.