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Dogwifhat (WIF), the meme coin that made waves in Q1 2024, has seen a rough week, dropping over 23%. However, recent signs hint at a potential rebound, with bulls attempting to wrestle control from the bears.
Despite the price slump between June 5th and 24th, where WIF fell from $3.42 to $1.60, the token showed resilience by climbing back to $2.25 on July 1st. Unfortunately, selling pressure pushed it back down to June lows.
A glimmer of hope emerges from the daily chart’s Cumulative Volume Delta (CVD). This indicator tracks buying and selling volume. Green bars signify buying pressure exceeding selling pressure, while red bars indicate seller dominance. WIF’s recent CVD prints green bars, suggesting over $307,950 more buying than selling. If this trend continues, WIF could avoid dipping below $1.70 again and potentially target higher values.
Further backing this potential rise is on-chain analysis via Open Interest (OI). While the current OI of $166.7 million is low compared to July 6th, it’s an improvement over July 7th. Open Interest reflects the total open contracts in the market. A rising OI indicates aggressive buyers increasing their positions, while a decline suggests market participants closing positions and exiting. While WIF’s chart hints at a price increase, a significant OI rise is crucial to solidify this jump.
Also Read: Dogwifhat (WIF)! Can a 20% Rally Tame the 24% Drop? Bulls vs. Bears Battle Heats Up
Technically, the Moving Average Convergence Divergence (MACD) sits above the signal line, indicating bullish momentum. The MACD gauges momentum using the difference between two moving averages. A positive reading suggests bullishness, while a negative one implies the opposite. This suggests WIF’s current momentum favors the bulls. An entry between $1.68 and $1.72 could yield gains as the price attempts to retest $2.11.
Can WIF reach $2 again? While the signs are encouraging, WIF’s future trajectory hinges on sustained buying pressure and rising Open Interest. Overcoming the $2 hurdle will be a significant test for the bulls’ resolve.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
