Dogwifhat dips, whale invests! What’s next for WIF prices?

• WIF saw an over 2% increase in value.
• A whale has accumulated over 200,000 so far.

dogwifhat [WIF] was one of the biggest losers in the past week, experiencing significant price declines. Despite this downturn, there has been a notable accumulation from a particular wallet, indicating some investor confidence or strategic buying amidst the dip.

Whale accumulates dogwifhat

According to data from Lookonchain, a newly created wallet recently withdrew $1.8 million worth USDC from Coinbase. This wallet then used 606,000 USDC to buy 227,896 dogwifhat at approximately $2.66 per token.

The accumulation is ongoing, with the wallet still holding about 1.2 million USDC.

This purchase is notable because WIF had been experiencing significant downtrends over the past seven days, making this trade a bullish move despite the recent declines.

WIF stays in a bear trend

Analysis of the dogwifhat price trend on a daily time frame showed that WIF experienced an uptrend only once in the last seven days. This occurred on 15th May, when the price increased by 9.50% to trade above $3.

However, it subsequently declined, reaching around $2.50 by 19th May after an almost 1% drop. At the time of this writing, WIF was trading at approximately $2.60, reflecting a 3% increase.

Source: TradingView

Additionally, the Relative Strength Index (RSI) analysis indicated a poor price trend over the past few days. The RSI was below the neutral line, signaling a bearish trend.

The only time in the past few weeks that WIF was clearly above the neutral line was during the over 9% increase on 15th May. Since then, it has remained below the neutral line.

WIF sees more long liquidations

Analysis of the dogwifhat liquidation trend on Coinglass showed that long positions have experienced more liquidation in the past few days.

This indicated that traders who were expecting the price of WIF to increase have had their positions wiped out due to the recent price declines.

Between the 18th and 19th of May, over $2.3 million in long positions were liquidated.

Source: Coinglass

Realistic or not, here’s WIF’s market cap in BTC’s terms

At the time of this writing, short positions were seeing more liquidations due to the recent uptrend in WIF’s price.

Given that the whale wallet accumulated WIF at around $2.66, a fall below this price range would result in a loss for these holdings.