- One whale purchased a notable amount of WIF, with smart money aligning as well
- Spot traders, on the other hand, have been selling the asset, opposing possible market gains
WIF has been on a downward trend for over a month now, recording significant losses. Over the past week alone, it declined by 36.28% on the charts, with there being the possibility of further drops too.
The last 24 hours reflected the bearish market state, as selling pressure has continued to mount despite whales and smart money trading activities. In fact, AMBCrypto found that spot traders might be behind the falling price of WIF as they sold their holdings.
Whales and smart money attempt to save WIF
There has been a significant move from whales—who control substantial portions of an asset’s supply—and smart money, known for making profitable trades.
In a recent move, one whale purchased 9.6 million WIF worth $6.9 million from Binance. Moves like this are considered bullish, as whales typically accumulate WIF at lower prices before a potential price surge.
Source: Lookonchain
According to Stalkchain, WIF remains one of the most purchased tokens in the market over the last 24 hours. The smart money cohort acquired WIF worth thousands of dollars during this period.
Despite this activity from whales and smart money, however, there’s a possibility that the expected rally may be delayed.
Profit taking – Spot traders sell off WIF
While whales have been accumulating, spot traders across multiple cryptocurrency exchanges have been selling – Following consecutive buying days.
According to exchange netflow data from Coinglass, spot traders sold a total of $930.60k worth of WIF in the past day alone.
Source: Coinglass
This selling activity followed three consecutive days of purchasing $15.14 million worth of WIF. This move could hint at minor profit-taking before a potential sustained upside.
Is a higher high on the horizon?
On the charts, there seemed to be possibility for a bounce to higher levels as WIF traded into a key support level at $0.69. This triggered a notable push to the upside, with the crypto trading at $0.74 at press time.
Source: TradingView
This upward move aligned with the Relative Strength Index (RSI), with the same in the oversold region. Since it was trending upwards, it indicated that buying is already happening across the market.
The oversold region typically signals seller exhaustion and buyer dominance. Should WIF continue trending higher and move out of this zone, it would confirm renewed buying activity. This will set the stage for WIF to establish higher highs.
