The memecoin known as dogwifhat [WIF], ranked as the fourth largest in terms of market capitalization, has seen a robust uptrend in the past month. At the time of composing this article, the memecoin was priced at $1.58, marking a decrease of 0.97% within the last 24 hours.
Prior to the current dip, WIF had been on an upward trajectory, witnessing a 5.07% increase over the past week and continued to extend its monthly gains totaling 7.3%. Despite these positive movements, WIF remains 22.17% below its recent peak of $2.03 and significantly lower by 67.42% from its all-time high reached in March 2024.
Analysts are now buzzing with discussions about WIF’s resilience to maintain a month-long uptrend, with predictions from popular crypto analysts, such as those from Cryptoscoop, pointing towards a potential new high of $10 due to ongoing accumulation.
Current Market Sentiment
In an analytical breakdown, Scoop emphasized the ongoing accumulation as a key factor in fortifying the memecoin for further progress.
The prevailing sentiment suggests that the current market activity reflects accumulation rather than redistribution. This lays the groundwork for an anticipated breakout, driving a robust bullish trend.
Reaccumulation typically occurs when major players like whales and institutions actively purchase assets during a period of consolidation, in preparation for another upward movement. This phase is commonly seen as bullish, with consolidation acting as a temporary pause before the trend shifts upward.
This scenario hints at a potential breakout above the current consolidation range, indicating a favorable market position for further gains.
Interpreting WIF Trends
Analysts have observed a strong upward momentum for WIF, suggesting that the current market conditions provide room for additional growth.
For instance, the funding rate of Dogwifhat aggregated across various exchanges has shown predominantly positive figures in the past week.
A positive funding rate across exchanges implies that long positions are paying shorts to uphold their trades, signaling a greater demand for long positions compared to short positions.
This market behavior is viewed as bullish, as investors exhibit confidence in the direction of the memecoin.
Furthermore, the positive OI-weighted funding rate reinforces this outlook, indicating increased demand for long positions, a favorable signal for bullish sentiment.
Potential for a WIF Rally
With WIF benefiting from conducive market conditions, the advanced-decline ratio (ADR) stands notably high at 4.91 at present, indicative of a strong bullish sentiment where gains exceed losses for the memecoin.
If the current conditions persist, WIF is poised to break above the descending trendline at $1.78.
A breakout at this level would further empower the memecoin potentially reaching $2.68. While analysts paint a positive picture, reaching $10 remains a lofty target.