Major Sell-off in Dogwifhat (WIF) as 5 Wallets Dump $24M Worth

• Five wallets sold $24M in WIF tokens, initially bought for $5,340, yielding a 4,497x return.
• Dogwifhat’s price dropped by 29.84% this week, reflecting persistent bearish trends since April.
• RSI at 48.21 and MACD below the signal line indicate weakening momentum and continued bearish sentiment.

According to Lookonchain, five wallets, possibly belonging to one individual, sold 14.53 million WIF tokens, valued at $24 million, within the last seven hours. This sale comes after the same entity acquired these tokens on November 30, 2023, for just $5,340, marking a 4,497x return. Had the sale occurred at the peak price, the profit would have been over $69 million, translating to a 12,927x return.

Weekly Price Analysis and Bearish Trend

At press time, Dogwifhat was trading at $1.69. According to data from TradingView, WIF has declined by 29.84% in the past one week. Since reaching its peak in early April, Dogwifhat has been declining, indicating a persistent bearish trend.

This negative trend is further highlighted by recent candlestick patterns, showing increased selling pressure. Consecutive red candles reflect strong bearish sentiment, with the latest week’s substantial drop highlighting this trend.

RSI and Momentum Indicators

Presently, the RSI stands at 48.21. This value places it below the overbought level of 70 and above the oversold level of 30, suggesting neither extreme condition. However, the RSI is trending downward, signaling weakening momentum.

Source: TradingView

The Moving Average Convergence Divergence (MACD) indicator also points to a bearish trend. The MACD line is currently at 0.2964, positioned below the signal line. This alignment confirms the bearish momentum, with the histogram showing negative values, further supporting this analysis.

Support and Resistance Levels

In terms of support and resistance, Dogwifhat may find potential support around the $1.00 mark, where the price had previously stabilized. On the other hand, if there is an attempt to recover, the recent high around $4.00 could serve as a resistance level. 

The notable selling pressure, coupled with weakening momentum indicators such as RSI and MACD, suggests that Dogwifhat is currently experiencing a bearish phase. Looking ahead, the market should monitor these support and resistance levels closely. Future price movements will likely depend on whether the bearish sentiment persists or if new buying interest emerges.