Whale Betting Millions on WIF But Price Still Falls Heres Why

Recently, a whale address accumulated dogwifhat (WIF) tokens worth $4.6 million. The address with the highest holdings accumulated these tokens.
Recently, dogwifhat (WIF) experienced a significant accumulation from a prominent whale address, which aligns with the positive trend in its price over the past two days.
However, the excitement seen in the direct market trading does not seem to be reflected consistently in the derivatives market.
Increase in WIF Whale Holdings
Recent data from Lookonchain shows a whale address making significant progress in the dogcap market. The address invested $4.65 million to purchase 2.3 million WIF tokens, with each token priced at over $2.
This recent acquisition makes the address the largest holder of memecoins.
With this latest purchase, the address now holds a total of 23.39 million WIF tokens, worth over $49 million. At the time of writing, the holdings of this address have gained substantial profits of over $83 million.
Such significant activity by a whale could have a significant impact on market dynamics, potentially affecting token prices and investor sentiment.
It also highlights the role of large holders in shaping trends.
Decrease in WIF Accumulation
Analysis by AMBCrypto suggests that despite the accumulation of WIF tokens by the whale address at around $2, the price in the market has slightly decreased.
At the time of writing, the trading price for WIF is around $1.9, a decrease of over 2%.
The token experienced a significant surge in the previous trading day, crossing the $2 mark after a rise of over 11%. This surge built upon a previous increase of over 15%, with the price reaching $1.8 on June 23.
Despite these recent upward trends, WIF remains in a bearish trend. The Relative Strength Index (RSI) is below the neutral line, supporting this assessment.
While the RSI indicates a bearish trend, it also suggests that with the recent price increase, this trend has weakened, indicating a possible shift in momentum or investor sentiment.
Slow Trend in Derivatives
Research on public interest in WIF by AMBCrypto shows relatively stable market conditions with minor fluctuations.
At the time of writing, the open interest for WIF futures contracts stands at around $260 million, slightly higher than the previous trading day’s $246 million. This moderate increase indicates some stagnation in market activity for WIF derivatives.
Furthermore, the weighted funding rate has slightly increased, indicating marginal changes in market dynamics.
Is your portfolio in the green? Check the WIF profit calculator.
However, the overall stability of this rate in recent days suggests a lack of significant driving force or shift in trader sentiment.
These indicators suggest that although sellers continue to dominate the market, their activity has recently weakened, reflecting a period of consolidation or a lack of strong market dynamic information.