On December 16th, Monday, the crypto market witnessed a surge in buying pressure as Bitcoin price hit a new high of $107,500. While the BTC growth has bolstered most major altcoins, the dog-themed memecoin WIF struggles to build bullish momentum. However, a crypto whale finds the dogwifhat price correction an opportunity to buy as the asset approaches key support.
According to Coingecko, the WIF price trades at $2.78, with an intraday gain of -2.3%. The asset market cap holds at $2.79 Billion, while the 24-hour trading volume is at $633 Million.
Key Highlights:
- The dogwifhat price correction sees a 14% fall before seeking support at a multi-month trendline.
- A potential bearish crossover between the 20-and-50-day Exponential moving average could extend correction in WIF.
- The current downtrend witnessing whale accumulation hints potential for a bullish turnaround.
dogwifhat Price Correction Meets Whale Buying: Signs of Bottom Formation?
According to lookonchain, a crypto whale withdrew 4.58 million ACT valued at $2.46 million and 753,472 WIF worth $2.17 million from the Binance exchange.
Despite an active correction trend in dogwifhat price, the aforementioned accumulation the large investor’s confidence for a potential rebound. Historically, the whale buying sphere amid the downward trend is recorded as early signs of bottom formation and renewed bullish momentum.
This whale also holds other assets, including ACT, JTO, HNT, GIGA, SPX, and WORM, with varying degrees of unrealized profits and losses across these trades.
WIF Eyes Another Dump Before Hitting Key Support
Since mid-November, the dogwifhat price has recorded a notable correction from $4.8 to $2.76, registering a 42.6% loss. The falling price currently halts at a 200-day EMA as Bitcoin boosts market sentiment to a new high.
However, with some crypto gurus projecting an overbought scenario and potential for a bearish pullback in the digital market, the WIF price could suffer. With sustained selling, the dogwifhat price could plunge another 14% to test an ascending trendline of around $2.36.
Over the past four months, this dynamic support has acted as a key accumulation zone for buyers to recuperate the bullish momentum. The previous reversal from this support has led to a notable recovery in dogwifhat price, projecting the potential for another reversal.
If the theory proves right, the WIF coin could rise back for a $4 breakout.
Conversely, a breakdown below the bottom trendline could invalidate the bullish thesis and surge selling pressure for a prolonged downfall.
Also Read: Bitcoin Hits ATH of $106,487 as Third U.S. State Gears Up for BTC Reserve
