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15 November 2024 17:24, UTC
Dogwifhat (WIF) has been among the top performers in the current bull cycle, which saw the market cap of all meme tokens soaring toward $120 billion, according to CoinGecko.
WIF gained around 55% over the past seven days as cryptocurrency market capitalization skyrocketed past $3 trillion on Trump-driven rallies.
However, a dip-pocketed investor has stirred conversation about the meme token’s future after a significant sell-off.
On 15 November, Lookonchain revealed that a wealthy investor swapped 850,000 Dogwifhat coins for Solana worth $3.4 million (15,987 SOL tokens).
A smart whale dumped 850,000 $WIF for 15,987 $SOL($3.4M) 7 hours ago, with 50,000 $WIF($175K) left. The total profit on $WIF is ~$7.5M! The whale also spent 3,800 $SOL($801K) to buy 1.74M $Pnut($2.87M), and currently has an unrealized profit of $2.07M($3.4M at the peak)!…
Details show the investor still holds 50K Dogwifhat coins (worth approximately $175K) despite the considerable sell-off.
Meanwhile, the transaction saw the whale netting $7.5 million in profits, signaling strategic investment approaches.
While the transfer revealed Dogwifhat’s profitability potential, it triggered speculations about the meme coin’s future trajectory.
Has the investor reduced his exposure due to upcoming dips? Though that could be the case, his existing holding of 50K tokens instills confidence in the token’s future performance.
Lookonchain added that the trader also netted significant returns in Peanut the Squirrel.
The whale spent Solana worth $810K (3,800 SOL tokens) to acquire 1.74 million PNUT (valued at around $2.87 million).
PNUT’s recent gains saw investor’s unrealized profits coming at $2.07 million.
The whale has invested in various altcoins, including Pepe On Fire (PFIRE), Cat Own Kimono (COK), and GOCHAD (GIGA), according to Solscan.
Meanwhile, investor attention switched to WIF’s price action following the whale dump.
The significant sell-off saw the meme token painting its daily chart red, confirming weakness in the near term.
The dog-themed cryptocurrency lost nearly 10% of its value within the past day to trade at $3.70. Its 24-hour high and low are $4.1131 and $3.3839.
Dogwifhat signals further price dips as daily trading volume plummets 60%.
The token’s bearish performance could have dented investor confidence in WIF, possibly explaining the recent considerable dump.
Moreover, the asset’s future open interest and volume plunged 10.35% and 55%, respectively, to $645.75 million and $3.53 billion (Coinglass data).
That highlights faded investor trust in the altcoin’s price performance.
Nonetheless, WIF still boasts some stability, which could offset emerging bearishness.
For instance, its price sways well beyond the crucial 50-day and 200-day Exponential Moving Average on the daily chart, signaling a bullish trend.
Moreover, the Chaikin Money Flow indicator has climbed over the past three weeks, indicating increased money joining the Dogwifhat ecosystem.
Thus, WIF appears to have what it takes to absorb prevailing selling pressure for swift rebounds in the upcoming sessions.
Moreover, the crypto space anticipates an imminent altcoin season – a period where alts outperform Bitcoin.
#AltcoinSeason about to start! #Bitcoin dominance is about to drop. Money will rotate from #Bitcoin into #altcoins as it did in the past. Historically 230 days after halving.
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