- Over $930,000 in smart money entered $WIF (Dogwifcoin), marking a substantial spike in institutional or experienced trader participation, often seen as a bullish signal.
- Despite the strong inflows, $WIF’s price declined sharply from ~$1.25 to ~$1.05, falling below all key short- and long-term moving averages—indicating bearish momentum.
- The sell-off coincided with increased trading volume and price movement along the lower Bollinger Band, signaling potential profit-taking and sustained market caution.
Recent data from blockchain analytics platform Nansen.ai revealed a sharp increase in smart money inflow into $WIF, also known as Dogwifcoin. In 24 hours, over $930,000 entered the token, representing an 832% jump in smart money balances. This level of accumulation typically suggests growing confidence among institutional or experienced investors.
Supporting data further indicated that addresses tagged as smart money accounted for the most significant increase in holdings. Meanwhile, balances in top wallets, whales, and public figure-linked addresses showed comparatively more minor gains. Traders often interpret such smart money inflows as early signals of possible price momentum or upward shifts. However, despite the surge in interest, the current price trend presents a different scenario.
The price decline signals bearish pressure despite inflows.
The 1-hour candlestick chart of the WIF trading pair at Binance reveals a notable price drop. The value fell from approximately $1.25 to just over $1.05 in a short period. This move pushed the price below all key moving averages, the 7-period (1.113), 25-period (1.172), and 99-period (1.206), marking a clear bearish trend.
Additionally, the price candles moved along the lower Bollinger Band, a pattern often linked to increased selling activity. The volume chart showed a corresponding spike in red bars, reinforcing the idea that selling was supported by high trading activity. The consistent volume indicates that this is not a result of market illiquidity but relatively strong sell-side participation.
Profit-Taking Likely as Market Reacts to Build-Up
Heavy inflow, anticipating a sharp correction in price, can only imply that some first time buyers might have profited here. Once extreme accumulation is done and the price movement is no longer in favor of additional benefits the holders may opt to liquidate part of their stocks. When this happens, there would be short-term pressure in an asset as witnessed in the recent decline.
Even though smart money build-up still serves as an instrumental indicator, short-term market trends are still being driven by price developments and technical analysis. At the present the $WIF needs to take back above its moving averages to indicate momentum is turning the corner. Up to this, the market reaction is signalled by prudence, irrespective of the high capital flow.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
