- A divergence between the price of WIF and the CMF indicates that traders may be buying the dip following the recent downturn.
- Dogwifhat sentiment has improved, suggesting a change in perspective towards one that is more optimistic.
- WIF is getting closer to a critical demand zone between $2.14 and $2.20 as additional evidence point to a possible upturn.
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Dogwighat’s (WIF) price might be declining as July draws to a finish. But new research suggests that August’s first few days might have a different melody.
WIF is currently trading at $2.30 despite having hit a monthly high of $2.89 on July 22. Though it might be time for prices to rebound, the drop in value can be attributed to profit-taking following the prior increases.
Traders of Dogwifhat Are Purchasing the Dip
As the price of WIF declines, the Chaikin Money Flow (CMF) increases to 0.15 on the daily chart, suggesting that the decline would not last long. CMF calculates distribution and accumulation over a specified time frame.
An increase in the rating indicates a spike in purchasing pressure. On the other hand, a decline in the indicator’s position indicates that sellers are withdrawing cash from the market.
The meme coin’s worth may benefit from the divergence between the price of WIF and the status of the indicator. Given the circumstances, it appears that traders are buying the dip before the price has had a chance to adjust.
Along with the increasing money flow, dogwifhat has seen a rise in the Weighted Sentiment rating. Weighted Sentiment typically determines whether comments on a cryptocurrency project are more favorable or unfavorable.
Positive readings imply that there are more positive views online, and negative readings imply the reverse. The Weighted Sentiment for WIF is -0.30 at the moment, albeit this is an improvement over July 29.
This increase suggests that users of social media are shifting away from a gloomy outlook and toward a positive one. If the sentiment stays in the favorable range, WIF can experience stronger demand, which might ultimately result in a higher price.
WIF Price Forecast: We’re Approaching the Re-Accumulation Season
The daily WIF/USD chart shows that the meme coin has lost over half of its gains from July. The price is heading into a critical demand area, which is situated between $2.14 and $2.20, as it drops.
Other than that, the price is about to cross over the 20 EMA (blue). Exponential Moving Average, or EMA for short, gauges the direction of a trend. When a cryptocurrency’s price is above the EMA, the trend is often bullish.
If it is below, on the other hand, the trend is bearish. Consequently, WIF breaking over the 20 EMA may confirm the recent flash of bullishness. In the event that this is true, the token’s price might rise to $2.47 and then $2.78.
Conversely, the price might not be valid if the rate of money flow into WIF declines. In that scenario, the value of the cryptocurrency might decrease to $2.10.
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.
