Major $WIF token transactions have raised eyebrows in the crypto community as whales adjust their positions amid a declining market.

Earlier today, a prominent whale deposited 11.98 million $WIF ($17.5 million) into Binance just hours after withdrawing the same amount between January 8 and January 10. The tokens were previously sold at an average price of $1.73 per token, resulting in a $3.27 million loss for the whale.

Adding to the activity, a whale identified as “layercake.sol” has been offloading $WIF using a Dollar-Cost Averaging (DCA) strategy. On January 9, the whale sold 3.63 million $WIF ($5.81 million).

Interestingly, “layercake.sol” first invested in $WIF on December 13, 2023, when the token’s market capitalization was only $3 million. Despite recent sales, this early entry has netted the whale a $4.43 million profit overall.

The $WIF token has faced significant price pressure recently. It has dropped 5% in the past 24 hours, with its current market capitalization standing at $1.44 billion, marking a 50% decline over the last month.

Technical Indicators Show WIF in Oversold Territory

The Relative Strength Index (RSI) for $WIF has plunged to 17.8, signaling extreme bearish momentum. An RSI below 30 typically indicates oversold conditions, suggesting the possibility of a rebound. However, without renewed buying interest, the ongoing sell-off may persist.

Similarly, the Average Directional Index (ADX) for $WIF has surged to 43.7, indicating a strong bearish trend. The rapid rise in ADX reflects intensifying selling pressure, and without intervention from buyers, further price declines may be imminent.

If the downtrend continues, $WIF could test critical support levels at $1.32, with a breach potentially driving the price as low as $1.07. Such a move would represent a further 30% correction from current levels. Conversely, improved market sentiment could see $WIF challenge the resistance at $1.73 and potentially climb back toward $2.2.

The current price volatility underscores the fragility of meme coin markets, with both whales and retail investors playing significant roles in driving momentum.