After a prolonged decline in the cryptocurrency sector, there are signs of a potential recovery as several assets witness notable price increases. Recently, Lookonchain, an on-chain analytic firm, reported a substantial acquisition by one of the major holders of dogwifhat (WIF) tokens. This large entity invested a considerable $4.65 million to purchase 2.3 million WIF tokens, indicating a bullish stance in the market.

The analytic firm emphasized that the average price of this significant WIF purchase stood at around $2.03. Presently, the whale wallet holds an impressive 23.39 million WIF tokens valued at $49.6 million. Apart from the substantial WIF holdings, the whale wallet has accrued profits exceeding $83 million from WIF investments. In their statement, Lookonchain mentioned that this entity also made a notable transaction by spending $8.65 million to acquire 17.22 million WIF in a single trade.

This recent purchase of WIF by the whale investor showcases a renewed interest and confidence in WIF amid a bearish market sentiment, hinting at a potential opportunity for bullish momentum. While WIF has shown consistent positive performance, surging over 30% in the last 2 days, major cryptocurrencies like Bitcoin and Ethereum continue to face challenges in gaining momentum.

Currently trading near $2.02, WIF recorded an 8% price surge in the last 24 hours. Despite the recent upswing, WIF remains down by 4.3% over the past week. Over a 30-day period, the price of WIF has declined by 35%. Despite its strong performance, the trading volume in the last 24 hours indicates reduced participation from traders and investors with a 21% decrease in trading volume as per coinmarketcap data.

In terms of technical analysis, WIF appears bullish, yet it encounters substantial resistance around the $2.1 mark. A potential significant uptrend may be anticipated if WIF achieves a daily candle close above $2.20. On the 4-hour time frame, WIF remains below the 200 EMA but above the 50 EMA.

Moreover, investor interest continues to rise as WIF's 24-hour open interest (OI) has surged by 7.5%, potentially signaling a bullish outlook for this meme coin.