According to Lookonchain, a potential cluster of wallets executed a significant sell-off of 14.53 million WIF tokens through five wallets between 5:15 and 6:30 UTC+8 today, cashing out approximately $24 million.

This cluster had initially purchased these WIF tokens on November 30, 2023, at a mere cost of $5,340, realizing an astonishing 4,497x return.

This Major Sell-Off Triggers WIF Critical Level Price Action

The sell-off has brought WIF to a critical juncture. Currently trading at $1.70 on the Solana blockchain, WIF is hovering near a crucial support level. Whether the token can hold above $1.50 will dictate its short-term trajectory.

A successful retest and bounce at this support level could stabilize the price and potentially lead to a recovery. Conversely, a further breakdown below $1.50 might trigger more selling pressure and drive the price lower.

Market watchers are keenly observing this support level, as it will significantly influence WIF’s near-term performance. The recent sell-off by such a substantial holder indicates a shift in market dynamics, potentially affecting investor sentiment. However, the strong return on investment achieved by the cluster may also signal underlying confidence in WIF’s long-term potential, despite current volatility.

As WIF approaches this pivotal price point, traders and investors will be closely monitoring the market’s response. The outcome will provide insights into WIF’s resilience and the broader market’s appetite for risk in the face of substantial sell-offs and critical technical levels.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!

Image Source: balage941/123RF // Image Effects by Colorcinch