WIF price analysis as some whales buy the Dogwifhat dip
The Dogwifhat (WIF) price rebounded on Tuesday morning as investors rotated back to meme coins. WIF jumped to a high of $1.910, its highest swing since June 20th. It has soared by more than 28% above its lowest point this week.
Whales are buying Dogwifhat
WIF’s rebound is happening in line with the performance of other meme coins. Jeo Boden token surged by over 64% while Popcat, Mog Coin, MAGA, Ben the Dog, and Doland Tremp surged by over 30%.
This rebound could be a dead cat bounce, which happens when an asset rebounds briefly after experiencing a big drop. In most periods, this increase is usually short-lived. Dogwifhat had previously crashed by over 50% from its highest point this year.
WIF token also rebounded as some whales bought the dip. Data compiled by Lookonchain shows that a whale who lost $4.63 million on the WIF token moved back and acquired tokens worth $3.7 million at an average price of $1.83. This means that his trade has already become profitable at the time of writing.
Meanwhile, an earlier buyer of WIF bought tokens worth $1.6 million and now holds 3.93 million tokens worth over $7.3 million.
These token purchases mean that there is still strong demand for the dogwifhat token. Data by Solscan shows that the token has over 160k token holders and the number could continue rising as more whales move back in.
Dogwifhat price forecast
The 4H chart shows that the WIF token price has rebounded in the past few hours. This rebound happened after the token formed a small morning star chart pattern, which is one of the most bullish signs.
WIF token is approaching the 23.6% Fibonacci Retracement point at $2.10, which is about 10% above the current level. The Relative Strength Index (RSI) has pointed upwards. Still, the token remains below the 50-period Exponential Moving Average (EMA).
Therefore, the token will likely continue rising as whale activity increases. A break above the 23.6% retracement point at $2.10 will point to more upside, with the next point to watch being the 38.2% retracement level at $2.50.
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