According to Lookonchain, a whale spent $1 million in Solana (SOL) to buy 2.68 million dogwifhat (WIF) 16 hours before Binance announced the WIF perp pair. In another post, the smart money tracking handle noted that the whale could be an insider of the project. Based on the post, Lookonchain noted that the wallet owns 37 million WIF and has an unrealized profit of more than $8 million.
Binance just announced that will launch $WIF perpetual!
Is this guy who spent 86,738.1 $SOL($8.65m) to buy 17.22M $WIF really an insider?
The 37M $WIF currently held by this guy is worth $17M, with a floating profit of more than $8M!https://t.co/nqeVXKmqoO pic.twitter.com/niE7XdGEiT
— Lookonchain (@lookonchain) January 18, 2024
WIF Eyes a Move to $0.50
When issues like this arise, there is usually speculation that the participants involved are either part of the team or the developers themselves. For WIF, it was uncertain what it was. However, before Binance’s recent announcement, there was a lot of demand for WIF on-chain.
At press time, WIF’s price was $0.445, representing a 163.70% hike in the last 90 days. The price increase has also helped the market cap of $443 million as of this writing. Despite being built on Solana, WIF has not followed the growth of SOL recently. While the latter was finding it hard to beat the $100 region, WIF kept surpassing each resistance it faced.
From the 4-hour WIF/USDT chart, the price closed above the 9 EMA (blue) which was at $0.40. It also flipped the 20 EMA (yellow) which was at $0.36. The trend here implies a bullish thesis for WIF.
WIF/USDT 4-Hour Chart (Source: TradingView)
However, to reach $0.50, bulls would have to cross the hurdle at $0.45. If buyers clear this path, then a jump to $0.50 or above could be confirmed.
High Volatility Arises
Furthermore, indications from the Bollinger Bands (BB) signaled high volatility. This suggests that WIF’s price could run higher. However, the upper band of the BB tapped WIF and $0.44, suggesting that the token was overbought.
So, WIF might drop as low as $0.42 in the short. However, indications shown by the Relative Strength Index (RSI) showed that WIF had good buying momentum. So, the price might continue to move northward.
But if the RSI hits 70.00, there is a high chance the price drops. At the same time, the potential decline could be an opportunity for market players to buy more.
WIF/USDT 4-Hour Chart (Source: TradingView)
If this should be the case, buying pressure might send WIF higher, and if participants hesitate to sell, the price might inch closer to $1.
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