The WIF price has pulled back over the past few days as investors took profits and momentum faded. The Dogwifhat token has moved below the psychological point of $1 after falling by 36% from its highest point this year. Let’s explore why the WIF price may rebound even as whales and smart money book profits.
Whales and Smart Money are Selling
On-chain data shows that whales and smart money investors have started selling Dogwifhat. This selling is happening after the coin surged by over 375% from its lowest level in March to its highest level in May. It is common for investors to sell assets after a significant price increase.
Data shows that these whales hold just 115,615 WIF coins, down from over 240k earlier this year. Their holdings have plunged by over 50% in the last 30 days.
Another on-chain data shows that whales hold approximately 39 million coins, a 22% decrease over the last 30 days. Their holdings have dropped from over 63 million at their highest level in May.
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There is a big difference between whales and smart money investors. Whales are large investors who have a sway on a coin’s price, while smart money has a track record of executing successful trades.
Another negative data point is that Dogwifhat’s open interest has retreated in the past few days. Its OI moved to $336 million on Thursday, down from $483 million in May last year. Falling OI is a sign that demand is waning as it pulls back.
However, there are signs that the WIF price will rebound in the coming weeks. For one, it has a positive funding rate, signaling that investors anticipate its future price will be higher than the current one.
WIF Price Technical Analysis
Another reason the WIF price may rebound soon is that it has strong technical indicators. On the daily chart, we see that the coin has remained above the 50-day Exponential Moving Average (EMA), signaling that bulls are in control.
Furthermore, the coin is slowly forming a cup-and-handle pattern, with its upper side at $1.3473. This pattern is made up of a rounded bottom and is now forming the handle section.
The profit target in the C&H pattern is established by first measuring the depth and then the same distance from the upper side. In this case, the cup has a depth of 75%, meaning that its price will jump to $2.37.
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