Dogwifhat price plunged 3.5% to $1.9 on Sunday trading sessions, underperforming in the less volatile weekend. However, the pullback is nominal compared to the early week rally, indicating a cool-off to recuperate the bullish momentum. Thus, the WIF price is poised for renewed recovery amid whale accumulation and open interest spike in future markets.
Dogwifhat Price Soars as Key Investor Acquires 800K WIF
According to the on-chain tracker Lookonchain, the leading holder of Dogwifhat, has significantly increased its stake by purchasing 800,556 WIF tokens for $1.92 each, using 1.54M USDC. This acquisition raised their total holdings to 28 million WIF, with a market value of $53.23 million.
Additionally, the investor demonstrated aggressive buying behavior by depositing $35.48 million worth of WIF into Kamino over the past three days and securing a $3.24 million USDC loan to purchase an additional 1.8 million WIF.
The largest holder of $WIF spent 1.54M $USDC to buy 800,556 $WIF at $1.92 again!
This whale currently holds 28M $WIF($53.23M), and the profit on $WIF has exceeded $77M!https://t.co/MYA8tsXYpe pic.twitter.com/V37j7egQsI
— Lookonchain (@lookonchain) August 25, 2024
Such substantial investments by major stakeholders typically exert upward pressure on the asset, contributing to a sustained market recovery.
The Dogwifhat price currently trades at $1.9, boosting a market cap of $1.9 Billion.
Additionally, the open interest for WIF in the futures market surged from $192.8 million to $264.1 million within a week, marking a 37% increase, according to Coinglass. This significant growth suggests a rising interest among investors, indicating strong market confidence or speculative activity.
WIF Open Interest | Coinglass
WIF Price Nearing a Major Breakout
This week, the cryptocurrency market witnessed a notable recovery amid a Bitcoin price rally of above $64000. Following the momentum, the dog-themed memecoin Dogwifhat bounced from $1.39 to $1.9, registering a 36% growth.
An analysis of the daily chart reveals this upswing as the development of a falling wedge pattern— a major reversal pattern since March 2024. While the two converging trendlines of the pattern drive a steady downtrend, in theory, it signals diminishing bearish momentum. Thus, with sustained buying, the Dogwifhat price could rise 12% before challenging the overhead trendline at $2.1.
A potential breakout will signal a major shift in market trend and bolster a rally to $2.9, followed by $4.
WIF|USDT – 1d Chart
Conversely, the overhead trendline has strengthened traders’ confidence against the sell-on-rallies sentiment. Additionally, the 100-day exponential moving average, which aligns with the downsloping resistance, could prompt another reversal in Dogwifhat price, potentially invalidating the bullish breakout.
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