Factors Contributing to the Potential Surge
In the recent week, WIF has encountered fluctuations, experiencing a 6.65% drop to its current value of $2.44. This price level was previously surpassed during a surge in October, followed by a pullback due to strong resistance.
Currently, WIF is making another endeavor to surpass this resistance and potentially reach a new high at $4.80.
The recent trading pattern of WIF reveals a symmetrical triangle formation, often signaling an imminent upward movement. This pattern emerges when the support and resistance lines converge, leading to a narrowing price range.
If this pattern unfolds with robust momentum, WIF could breach the resistance barrier at $2.918, a level that has consistently obstructed price advancements in the past.
In the event of a successful rally, WIF might potentially double in value, targeting $4.860 in the long term and $4.080 in the intermediate period.
Positive Signals and Market Analysis
In assessing market sentiment and its correlation with the bullish formation, CryptoCrypto conducted an analysis of on-chain metrics, revealing encouraging signals that support the optimistic outlook on WIF.
Coinglass reported a surge in Open Interest (OI), indicating increased buying activity in the Futures market. The OI spiked by 3.95% to $396.52 million, complementing WIF’s volume rise of 40.8% to reach $857.60 million.
Moreover, the funding rate escalated to 0.0065%, hinting at active support from long traders to maintain price stability and reflecting a bullish sentiment surrounding WIF.
With both indicators displaying positive trends, the probability of a substantial rally for WIF becomes more apparent.
Increasing Liquidity Flow
Recent on-chain data suggests a growing inclination towards purchasing WIF as traders open substantial long positions, leading to a notable influx of liquidity into WIF investments.
The Chaikin Money Flow (CMF) indicator also demonstrated a significant rise, transitioning from negative levels to a neutral position at 0.00.
This rapid shift to a neutral CMF value indicates a robust acceptance of liquidity in the market, signaling sustained bullish momentum.