Dogwifhat (WIF), the meme coin that surged in popularity earlier this year, has faced a recent downturn. Despite a 23.76% drop in the last week, there are early signs of a potential rebound, with several indicators offering mixed signals.
After a significant drop of 39.55% between June 5th and 24th (from $3.42 to $1.60), WIF attempted a recovery, reaching $2.25 on July 1st. However, renewed selling pressure pushed the price back down to its June lows.
Daily Chart Hints at Bullish Shift
A glimmer of hope appears on WIF’s daily chart with the emergence of a green Cumulative Volume Delta (CVD). This indicator displays the change in trading volume between buyers and sellers. A green bar signifies buyer dominance, suggesting they outpaced sellers by over $307,950 in recent trading. If bulls maintain this pressure, WIF might find support above $1.70.
Open Interest Hints at Potential Growth
On-chain analysis adds another layer to the potential turnaround. According to Santiment, Dogwifhat’s Open Interest (OI) currently sits at $166.70 million, although lower than July 6th’s figures. However, it’s an improvement over July 7th. Open Interest reflects the total amount of open futures contracts. An increase suggests bullishness as traders increase their net positions, while a decrease indicates market participants closing positions and exiting. While WIF shows signs of a price increase, a significant rise in OI is crucial to confirm a sustained jump.
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Bullish Momentum on the Horizon?
Another technical indicator, the Moving Average Convergence Divergence (MACD), offers a positive sign. A positive MACD reading suggests bullish momentum, potentially indicating an entry point between $1.68 and $1.72. This could lead to gains as WIF attempts to retest the $2.11 mark. However, it’s important to note that WIF faces resistance above $2.
For WIF’s price to break above $2, bulls need to maintain the current momentum and challenge any potential dominance from bears. If successful, WIF’s price could rise above this key level. However, renewed selling pressure could push the price below $1.60 again.
The coming days will be crucial for Dogwifhat. While early signs suggest a potential rebound, the battle between bulls and bears is far from over.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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