- Lookonchain revealed on X that a whale has been selling their WBTC to pay off debts.
- This could be a factor that contributed to WBTC’s price falling by 0.11% in the past hour.
- At press time, WBTC was resting on the key support level at $26,500.
The on-chain analysis platform Lookonchain shared in an X post earlier today that a whale holding positions in several tokens including Wrapped Bitcoin (WBTC), Ethereum (ETH), Chainlink (LINK), Uniswap (UNI), and Maker (MKR) has started selling their WBTC.
Lookonchain believes this is likely an attempt from the whale to address their outstanding debt. The whale already deposited assets worth $11 million onto Aave and subsequently borrowed stablecoins amounting to approximately $8.45 million. The health rate of the whale’s position is 1.08, indicating that they are extremely close to the liquidation threshold.
The whale’s desperate selling could be to blame for the fact that, according to CoinMarketCap, WBTC’s price dropped by 0.11% in the past hour alone. The token was, however, able to secure a slight 0.08% price rise in the past 24 hours. This meant that WBTC was trading at $26,821.57, which was right below its daily peak price of $26,876.98.
In addition to its price rise, WBTC’s 24 hour trading volume climbed by about 6% throughout the past day, which left the token’s intraday volume standing at $64,607,216. On the other hand, WBTC was still down by 2.88% on its weekly time frame.
From a technical perspective, WBTC was resting on the key support level at $26,500 at press time. Should it close a daily candle below this mark within the next 48 hours, then it could continue to fall to the subsequent support level at $25,390. Thereafter, continued sell pressure may lead to WBTC dropping to as low as $24,195 in the short term.
Conversely, if WBTC is able to remain above the $26,500 price point for the next 48 hours, then it may begin to climb to the major resistance level at $27,500 in the following few days. Thereafter, bulls could boost the cryptocurrency’s price to above this barrier to potentially reach as high as $28,495.
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