WIF price hits key resistance as a big whale buys the dip

Dogwifhat (WIF) price rose to an important resistance level on Wednesday after one of the biggest whales continued to buy more tokens. The token soared to a high of $2.15, its highest point since June 20th. It has soared by more than 40% from its lowest point this year.

Dogwifhat whale buys the dip

Dogwifhat’s performance has coincided with the rebound of other tokens like STrump, Notcoin, Peng, and Metadium. This rebound also happened after Bitcoin bounced back above $62,000 on Tuesday.

Meanwhile, data shows that some whales have bought the WIF price dip. For example, data by Lookonchain shows that the biggest holder of the Dogwifhat token spent 4.65 million USDC tokens to buy 2.3 million WIF tokens. 

These purchases brought his total holdings to over 23.40 million valued at over $49.6 million. Over time, he has made a profit of over $83 million, making him one of the most profitable traders in the meme coin industry.

WIF price technical analysis

Meanwhile, there are signs that the WIF price recovery is continuing. On the four-hour chart below, we see that the token has jumped above the psychological level of $2, which is a popular positive sign. 

The token has also jumped to the 23.6% Fibonacci Retracement point. Also, most notably, the WIF token has jumped above the 50-period and 25-period Exponential Moving Averages (EMA) and the two are about to form a bullish crossover pattern. 

The MACD indicator has jumped above the neutral level while the Relative Strength Index (RSI) is nearing the overbought level. The momentum indicator has also continued rising in the past few days.

Therefore, the WIF token price will likely continue rising as buyers target the 38.2% Fibonacci Retracement level at $2.42, which also coincides with the lowest swing on May 19th. A break above that level will see it jump to the 50% retracement point at $2.75.

The main risk to remember is that this could be a dead cat bounce, which happens when an asset in a freefall goes through a brief rebound. If this happens, there is a likelihood that the token will drop and retest this month’s low at $1.50.

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