WIF Price Dip: Buy the Dip or Wait?
WIF recently broke out after a period of steady accumulation, currently facing resistance at $1.32. Support lies between $1.10 and $1.15, a critical level determining whether WIF pushes towards $1.50 or retraces further.
WIF Price Analysis: Accumulation and Resistance
The recent surge in WIF price wasn't spontaneous. Weeks of quiet accumulation between $0.20 and $0.80 masked significant activity by large investors. Following a bullish market shift, WIF broke through key resistance levels. However, it's now encountering resistance at $1.32, a price point where previous buyers may be taking profits. This rejection has already pushed the price down to approximately $1.17.
Unlike the mid-January rally which saw a similar price range followed by a sharp drop to $0.30 within 100 days, the current on-chain data presents a different picture.
In January, the Long-Term Holder Net Unrealized Profit/Loss (LTH NUPL) plummeted to a stark -2.92, indicating substantial unrealized losses and significant selling pressure. This aligned perfectly with the subsequent price collapse. Currently, while LTH NUPL remains negative, it’s showing signs of improvement, climbing from -0.90 to -0.60. This suggests that while long-term holders are still underwater, the selling pressure is easing.
Whale Accumulation: A Bullish Signal?
The lack of significant selling pressure points to long-term holders holding onto their investments, anticipating a price increase. WIF's dip to $1.17 may have spooked some retail investors, but it's viewed by large investors as an opportunity to accumulate.
The number of wallets holding over 10,000 WIF has risen from 2,515 on April 8th to 2,657 at the time of writing—the highest count on record. This surge correlates with WIF's substantial price increase, outperforming many other large-cap cryptocurrencies. Furthermore, over 20 new whales entered the market within the last 24 hours.
This accumulation during a price correction isn't indicative of profit-taking; rather, it suggests strategic positioning. Smart money isn't chasing price increases but taking advantage of dips to accumulate more.
WIF's current situation strongly resembles a healthy pullback—a price correction following a significant rally while large investors accumulate in the background. This dip might present a favorable entry point.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your own thorough research before making any investment decisions.
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