The well-known memecoin dogwifhat [WIF] showed promising signs of a substantial price increase as it neared a critical breakout level.
Recent market sentiment has shifted from a period of decline to one of growth, with major cryptocurrencies such as Bitcoin [BTC] and Ethereum [ETH] observing significant price surges over the last 24 hours.
Speculation regarding WIF’s future trajectory remains uncertain, with the potential for either an impressive rally or a 20% decline in price.
Analysis of Dogwifhat and Key Price Points
Based on CryptoCrypto’s analysis, WIF appeared bullish currently, encountering notable resistance around the $2.88 mark.
Should the memecoin follow recent patterns and achieve a daily candle closure above $2.96, there is a strong likelihood of a substantial 30% surge, bringing the price closer to $4 in the days ahead.
Conversely, failure to sustain the current market sentiment alongside major cryptocurrencies could lead to a 20% decrease in the price of WIF soon.
The current uptrend saw the memecoin trading above the 200-day Exponential Moving Average (EMA).
Positive On-Chain Indicators
On-chain metrics provide further optimism, with Coinglass reporting a Long/Short Ratio of 1.07, signaling bullish market sentiment among traders for WIF.
Additionally, Futures Open Interest surged by 10.68% in the last day and continued to rise, indicating heightened trader involvement, possibly favoring long positions.
Moreover, WIF’s Open Interest Funding Rate stood at +0.0023%, reflecting a positive outlook towards the asset.
Noteworthy Liquidation Thresholds
Presently, notable liquidation levels sit at $2.748 and $2.866, with traders holding excessive positions at these points, as per Coinglass data.
If the price breaches $2.866 without a change in market sentiment, short positions worth nearly $3.80 million could be liquidated.
In contrast, a shift to lower prices around $2.748 might lead to the liquidation of long positions amounting to approximately $7.40 million.
This data indicates a higher bullish sentiment compared to bearish views presently.
When considering these on-chain metrics along with technical analysis, the dominance of bulls over WIF could facilitate breaching key resistance levels.
Present Price Performance
Currently trading near $2.80, WIF experienced a modest 1.15% decline over the past day.
During the same period, trading volume rose by 25%, illustrating increased trader and investor interest during this bullish market sentiment.