WIF Dips 20% to $1.17, Whales Accumulate, Signal Bullish Outlook

Coin WorldSaturday, May 24, 2025 1:16 am ET
2min read

WIF, also known as dogwifhat, has recently experienced a dip to $1.17, which some analysts view as a potential buying opportunity rather than a cause for concern. This perspective is particularly relevant for long-term investors who are looking beyond the immediate market fluctuations. Despite the pullback, WIF has demonstrated robust accumulation, with potential support levels indicating further upward movement towards $1.50. Experts from COINOTAG have noted that this correction is not driven by panic but rather by strategic repositioning within the market.

WIF's recent price action has been marked by significant traction, pushing towards the $1.50 mark after a month of quiet accumulation. Following weeks of trading between $0.20 and $0.80, smart investors began to accumulate positions, setting the stage for the current bullish trend. Currently, WIF is facing resistance at $1.32, a critical level for its future trajectory. This resistance has led to a retracement, with WIF hovering around $1.17. Traders are closely monitoring the behavior around the support level of $1.10–$1.15, which will be crucial in determining whether WIF can regain momentum or continue to pull back.

On-chain metrics provide a more optimistic outlook for WIF compared to previous downturns. In mid-January, when WIF approached similar price levels, the Long-Term Holder (LTH) Net Unrealized Profit/Loss (NUPL) dipped significantly to -2.92, indicating widespread panic selling among long-term investors. Currently, LTH NUPL has shifted upward, moving from -0.90 to -0.60. While this still signifies that many long-term holders are underwater, it suggests a slowing bleeding trend, contrasting sharply with the capitulation seen earlier this year.

The recent price dip has caused some retail investors to become rattled; however, seasoned market players have responded with assurance. The resilience of long-term holders is evident through their decision to maintain their positions rather than selling at a loss, indicating a belief in future upside potential. Wallets holding over 10,000 WIF have surged from 2,515 on April 8 to 2,657 currently, marking the highest whale cohort count recorded. This influx of new whales reflects a growing interest among large investors who perceive this dip as a buying opportunity rather than a signal for exit. The past 24 hours have seen over 20 new whales entering the market, further solidifying the notion that this tumultuous period is more about strategic positioning rather than panic. Such movements signify that seasoned investors are keen on taking advantage of market dips to enhance their holdings.

In summary, WIF is displaying characteristics of a healthy pullback rather than a bearish signal. The accumulation observed during these market fluctuations suggests that patient investors are setting themselves up for potential gains as the broader market stabilizes. In the midst of recent volatility, the current dip of WIF to $1.17 could represent a prime buying opportunity for well-informed investors. The strategic accumulation by whales and the upward shift in on-chain metrics signal a potentially bullish outlook. Observing key support levels will be essential as the market navigates through these fluctuations, presenting opportunities for those willing to stay the course.