The cryptocurrency market experienced a bullish reversal on Wednesday as Bitcoin reclaimed the $100,000 mark. This surge brought positive momentum to other altcoins, including WIF, which found support at $3. However, whale-driven selling pressure threatens the long-term stability of the memecoin’s price.
Current Status of Dogwifhat
According to Coingecko, WIF is trading at $3.04, with a daily gain of 7%.
Market Capitalization: $3.04 billion.24-hour Trading Volume: $909 million.
Despite the upward movement, selling pressure from whales signals the risk of a deeper correction. The $3 support level, reinforced by 100- and 200-day EMAs, currently provides an opportunity for buyers to accumulate.
Whale Selling Pressure Threatens Stability
Recently, a major cryptocurrency whale attracted attention after depositing 1.2 million WIF tokens worth $3.47 million into the market, according to Lookonchain.
This whale originally purchased the tokens 11 months ago for $393,000, realizing a profit of over $3 million. Such a significant sale often signals a potential market peak or strategic profit-taking, increasing the risk of further selling pressure.
Key Support Levels and Potential Drop
WIF’s price has already dropped from $4.8 to $3.04, marking a 38% loss. If the selling pressure persists, the price may break below the $3 support and the 200-day EMA, further intensifying the downtrend.
In a bearish scenario, the price could fall by 24% to $2.3, where an ascending trendline provides crucial support. Since November, this dynamic zone has served as an accumulation point during market corrections.
Possible Scenarios
Support Holds: If the price stays above $2.3, Dogwifhat could rebound and attempt to test the resistance at $4.8.Support Breaks: Conversely, if the price drops below the ascending trendline, it may accelerate selling pressure, pushing the price down to $2.
Summary
Dogwifhat is currently trading at a critical support level of $3, but whale-driven selling poses a risk of further correction. If support at $2.3 holds, the memecoin may resume its upward momentum. Otherwise, a decline to $2 is possible, signaling additional weakness. Investors should closely monitor key support and resistance levels to gauge the next moves.
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