As a seasoned crypto investor with a knack for spotting trends and patterns, I find myself intrigued by the recent developments surrounding Dogwifhat. The whale accumulation of nearly 10 million WIF in just four days is a telltale sign that the market could be gearing up for a reversal. This isn’t my first rodeo – I’ve seen this movie before, and it usually ends with a bull run.
On Monday, Dog’s price climbed by 4.5% to reach $1.45 during the Asian trading period. This upward trend is a bullish sign and comes after a significant market correction the previous week, which has generally been met with relief. Although many major altcoins haven’t yet shown signs of bottom formation, the increased attention from the WIF whale suggests that a possible price reversal could be on the horizon.
Dogwifhat Price Set for Reversal Amid Whale Buying Frenzy
As per data from Lookonchain, a significant investor (often referred to as a “whale”) has amassed around 9.57 million units of WIF (valued at roughly $13.59 million) over the past four days, primarily from exchanges such as Binance and Bybit. Such accumulation by whales is often seen in conjunction with significant price bottoms, and tends to boost optimistic market sentiments.
A whale has accumulated 9.57M $WIF($13.59M) from #Binance and #Bybit in the past 4 days!
— Lookonchain (@lookonchain) September 2, 2024
Currently, the value of a Dogwifhat is around $1.46, which represents a substantial decrease of approximately 70% from its peak price of $4.85. Yet, it’s important to note that the recent buying spree by significant investors (whales) isn’t just about the accumulation previously mentioned. In fact, the largest Dogwifhat whale has just acquired an additional 800,556 WIF, bringing their total holdings up to a staggering 28 million WIF, valued at an impressive $53.23 million.
To add to that, the Weekly Inverse Futures (WIF) rate for Dogwhati peaked at 0.016% on Monday, as reported by Coinglass. This positive figure suggests that investors are willing to maintain a long position in Dogwhati, even at a premium. This premium payment indicates a bullish sentiment among traders, who seem optimistic about a potential recovery for the asset.
WIF Price Nearing End-of-Correction Amid Wedge Pattern Formation
The price of Dogwifhat has been hovering near the $1.65 level for more than a month, suggesting that neither buyers nor sellers have a clear advantage in controlling its movement. This pattern, characterized by moderate fluctuations on both sides, shows a lack of decisive action.
From another angle, the WIF price aligns with the two lines of a contracting trend known as the falling wedge, suggesting this downtrend may be nearing its end. This pattern often indicates a ripe moment for a significant shift, potentially leading to a new buying chance.
If the current pattern continues, the memecoin themed around dogs might increase by 20%, potentially challenging the resistance line of its descending wedge formation. If buyers manage to transform this upper trendline into a potential support level, a fresh upward momentum could drive the price towards $2.9, with additional targets at $4 and $4.85.
Instead of an upward trend, when the short-term (20), medium-term (50), and long-term (100) exponential moving averages align negatively, it suggests that Dogwifhat’s price might continue experiencing selling pressure from above. This means that a price reversal from the downward trendline could extend this correlation, potentially causing the asset to drop back towards $1.
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2024-09-02 15:52