Dogwifhat relaxation despite whale dumping?

The WIF course has decreased in the past few days, since investors have taken care of profits and dynamics. The Dogwifhat token fell below the psychological point at $ 1 after it has fallen 36% of its maximum this year. We want to find out why the WIF course could rise again, even if Whales and Smart Money book profits.

Sell whales and smart money

On-chain data show that whales and smart Money investors have started selling Dogwifhat. These sales take place after the coin has increased by over 375% from its low in March to its maximum in May. It is common for investors to sell after a strong price increase.

The data show that this whales only hold 115,615 WIF, compared to over 240,000 at the beginning of the year. Their stocks have dropped by over 50 % in the last 30 days.

Other on-chain data show that the whales hold around 39 million coins, a decrease of 22 % in the last 30 days. Their stocks have dropped from over 63 million at the maximum in May.

There is a big difference between whales and smart money investors. Whales are large investors who have an impact on the price of a coins, while Smart Money can show a success record in the execution of successful trades.

Another negative fact is that Dogwifhat's open interest has decreased in the past few days. His OI dropped to $ 336 million on Thursday, compared to $ 483 million in May last year. A falling OI is a sign that the demand decreases while withdrawing.

However, there is signs that the WIF price will recover in the coming weeks. On the one hand, he has a positive funding rate, which means that investors assume that the future price will be higher than the current one.

Technical analysis of the WIF price

Dogwifhat Kurschart | Source: Tradingview

Another reason why the WIF course could rise again soon is the strong technical data. On the daily chart we see that the coin has remained over the 50-day exponential moving average (EMA), which signals that the bulls have control.

In addition, the coin is slowly forming a cup and handle pattern, the top of which is $ 1.3473. This pattern consists of a rounded underside and now trains the handle section.

The profit target in the C&H pattern is determined by first measuring the depth and then the same distance to the top. In this case, the cup has a depth of 75 %, which means that the price will jump to $ 2.37.

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