A cryptocurrency whale’s massive sell-off of WIF tokens has led to significant price declines and bearish technical indicators, suggesting further potential drops to $1.
Points
- A whale sold 14.53 million WIF tokens, causing a significant price drop.
- The sell-off resulted in a 4,497x profit for the whale.
- WIF’s price has declined over 12% in the last 24 hours.
- Technical analysis suggests further declines to $1.4 and possibly $0.90.
On August 3, 2024, Lookonchain reported that nearly five cryptocurrency wallets, potentially belonging to the same individual, sold over $24 million worth of dogwifhat （WIF） tokens. This massive sell-off follows the breakdown of a crucial support level of $157 in Solana.
Whale’s Massive Profit
The whale’s investment journey with WIF began on November 30, 2023, when they purchased 14.53 million tokens for just $5,340. Less than a year later, they managed to sell these tokens for $24 million, showcasing an impressive 4,497x return.
Impact on WIF Price
Following the whale’s massive sell-off, WIF’s price has experienced a significant decline. As of writing, WIF is trading near $1.71, with a 12% decrease in the last 24 hours. Additionally, WIF’s open interest （OI） has dropped by 5.5% during the same period, signaling lower interest from the crypto community amid this bearish outlook.
Technical Analysis and Key Levels
Expert technical analysis indicates that WIF looks bearish and may fall another 15% to reach the $1.4 level in the coming days. This level will act as a crucial support for WIF. However, if WIF fails to maintain this $1.4 level, it could experience more selling pressure, potentially dropping to $0.90.
According to CoinGlass data, the major liquidation levels for WIF are near $1.58 on the lower end and $1.76 on the upper side. If WIF continues to fall and hits the $1.58 level, nearly $6 million of long positions will be liquidated. Conversely, if WIF experiences an upward movement and hits the $1.76 level, nearly $6 million of long positions will be liquidated.
Conclusion
The recent massive sell-off by a cryptocurrency whale highlights the extreme volatility and profit potential in the memecoin market. While the whale realized a 4,497x profit, the subsequent decline in WIF’s price and open interest indicates a bearish outlook. Investors should exercise caution and closely monitor technical indicators to navigate this highly volatile market.
Explanation
- Whale Profit: The whale’s 4,497x profit demonstrates the potential for massive gains in the memecoin market.
- Price Decline: The significant drop in WIF’s price following the sell-off reflects the market’s volatility.
- Technical Levels: Key support and resistance levels indicate potential future price movements and liquidation risks.
- Market Volatility: The extreme fluctuations in memecoin prices underscore the importance of careful investment strategies.