Key takeaways
- A smart whale sold 850,000 Dogwifhat (WIF) tokens, sparking market speculation and a 15% price drop.
- The whale swapped WIF for SOL, booking $7.5 million in profits.
- Despite the large sale, the whale still holds 50,000 WIF, worth $175K.
Whale Dumps 850,000 Dogwifhat Tokens
A large Dogwifhat (WIF) token holder created a buzz in the crypto market by selling a significant portion of its holdings.
According to on-chain data from Lookonchain, the whale dumped 850,000 WIF tokens, causing an intraday price crash of 15%. This large-scale sell-off caught traders’ attention and sparked conversations about whether WIF has reached its peak in the current market cycle.
The whale didn’t just dump the tokens and walk away. Instead, they swapped the 850,000 WIF for 15,987 Solana (SOL) tokens, worth approximately $3.4 million at the time.
The trade allowed the whale to book an impressive $7.5 million profit, a clear sign of a strategically planned exit. Despite selling a huge chunk of their holdings, the whale still retains 50,000 WIF, valued at about $175,000.
Investors Speculate Over Future of WIF After Whale’s Exit
This massive profit-taking move has caused some concern among investors, making many wonder if this marks the top of WIF’s price rally.
Some traders fear that this whale move could be a signal that the meme coin’s recent bull run is coming to an end.
However, others are still optimistic, noting that the whale still holds a portion of WIF, which may suggest that they haven’t fully given up on the token’s potential.
Adding to the speculation, the whale has also recently made profits on other tokens. They bought 1.74 million PNUT tokens using 3,800 SOL, resulting in an unrealized profit of $2.07 million.
This success with the PNUT token, alongside holdings in GIGACHAD and Chaos and Disorder, shows that the Whale is actively managing their crypto portfolio.
Despite the uncertainty surrounding WIF, the crypto market optimism following Donald Trump’s victory may support WIF and other meme tokens.
WIF’s Price Action and Market Reactions
Following the whale’s sell-off, Dogwifhat’s price plummeted 16% in just 24 hours. The token’s trading volume also dipped by 55.50%, down to $1.79 billion for the day, according to CoinMarketCap.
This sharp decline reflects the sudden loss of market confidence partly triggered by the whale’s massive sale.
Additionally, Coinglass data showed a significant drop in Dogwifhat futures open interest (OI), which fell by 11% to $639.02 million. The derivatives trading volume also plunged 49%, signaling a broader loss of interest from investors in both spot and futures markets.
While these numbers may seem alarming, it’s important to note that the token has remained bullish in the past week. CoinMarketCap data recorded an increase of more than 54% within this period.
The recent whale action serves as a reminder of how quickly things can change in the volatile world of meme coins. Nevertheless, with the crypto market still largely bullish, the potential for future gains cannot be entirely ruled out.
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Rida is a dedicated crypto journalist with a passion for the latest developments in the cryptocurrency world. With a keen eye for detail and a commitment to thorough research, she delivers timely and insightful news articles that keep her readers informed about the rapidly evolving digital economy.
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