- The CVD’s increasing buyer activity suggests that the meme coin’s price is about to move in the right direction.
- Open Interest indicates a resurgence of market interest in WIF, despite being less than $200 million.
- Bulls must maintain their momentum and purchasing pressure in order for the price to hit $2.11. If not, it might drop to less than $1.60.
The meme coin Dogwifhat (WIF), which swept the cryptocurrency market in the first quarter of this year, has plummeted 23.76% during the past seven days. Nonetheless, WIF is exhibiting preliminary indications of a recovery, although several indicators continuing to provide conflicting clues.
Although the path to a pause may be difficult, BeInCrypto’s analysis reveals that bulls are adamant about raising the price of cryptocurrencies.
Dogwifhat Bulls Put Bearish Supremacy in Danger
WIF saw a recent decline of 39.55% from June 5 to June 24. The price dropped from $3.42 to $1.60 throughout this time.
On July 1, the token did, however, quickly recover to $2.25 before selling pressure forced it down to the lows of June.
The daily chart indicates that the situation appears to be shifting in WIF’s advantage. This is a result of the Cumulative Volume Delta’s (CVD) indications.
Changes in the volume transacted by buyers and sellers are shown by the CVD. A green bar on the CVD indicates that buying pressure is greater than selling pressure and that the volume change is greater than zero.
Conversely, a red bar on the indicator indicates that sellers are in control of the market. The CVD is green on WIF’s daily chart, as may be seen above. According to this stance, buyers prevailed over sellers by more than $307,950.
If bulls continue their current dominance, WIF might not drop below $1.70 once more. Alternatively, the meme coin’s price might be aiming for greater heights.
Moreover, the Open Interest (OI), which supports on-chain analysis, is a party to this possibility. Santiment claims that Dogwifhat has an OI of $166.70 million.
This is an improvement above the number for Sunday, July 7, even though it is still lower than the amount from July 6.
The total of all open contracts in the market is referred to as open interest. Buyers becoming more aggressive and expand their net positions as it rises. On the other hand, a decline suggests that traders are cutting their positions and withdrawing their funds.
Although WIF’s chart indicates a possible price increase, the move needs to be validated by an exponential growth in the OI.
WIF Price Forecast: Potential 20% Rally
The Moving Average Convergence Divergence (MACD), according to a further analysis of the memecoin’s technical position, is located above the signal line.
The difference between two moving averages—the 26 EMA (orange) and the 12 EMA (blue)—is how the MACD determines momentum. The indicator aids in identifying entry and exit places as well.
A bullish momentum is indicated by a positive MACD reading, whilst a negative reading implies the opposite. As a result, the reading at the time of publication indicates that WIF’s momentum is positive, and as the price tries to retest $2.11, an entry between $1.68 and $1.72 may result in profits.
It is important to note that WIF does not currently have a defined route above $2. Bulls need to maintain the momentum and establish whatever dominance bears desire in order to prove the argument.
The price of the WIF might surpass the milestone if this occurs. However, this will be rendered invalid if selling pressure manages to regain control of the meme coin market. If that’s the case, WIF will once more go below $1.60.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
