Dogwifhat [WIF] has been creating a buzz in the digital currency market, rising by 6.63% in the past 24 hours to $3.29, indicating a renewed bullish trend. Currently, the trading volume has surged by 19.38% to $1.02 billion, underscoring a growing interest in this particular asset. Following the breakthrough from a significant symmetrical triangle formation, WIF appears to be set for higher price levels. The key question now is whether it can uphold this upward trajectory.
Potential rally ahead as WIF shows bullish breakout
The breakout of Dogwifhat from the symmetrical triangle formation has captured the attention of traders, suggesting a transition from consolidation to a bullish trend. Additionally, the reclaiming of the critical support level at $2.978 may serve as a launchpad for further increases. Traders are now looking towards the next target at $4.822, offering a potential gain of 43.63%.
Technically, WIF is indicating robust bullish signs. The MACD has turned positive with a reading of 0.259, with the signal line closely following at 0.245, confirming a bullish crossover. This indicates that the momentum is favoring the buyers.
Furthermore, the Stochastic RSI is in the oversold territory at 19.11, hinting at a possible consolidation phase before another upward move. Combining the breakout with these indicators suggests a considerable upside potential for WIF in the near future.
Market sentiment analysis through the long/short ratio
Examining the long/short ratio provides further insights into the market sentiment. Presently, short positions slightly outweigh long positions, with shorts comprising 54.27% of taker volumes compared to longs at 45.73%.
This bearish sentiment could benefit the bulls if WIF’s price escalates towards the $4.822 target, potentially triggering a short squeeze. This might compel bearish traders to close their positions, leading to a further price surge.
Moreover, the increasing trading volume indicates a rise in interest, which could further support the bullish momentum.
Impact on WIF’s social presence and its underlying fundamentals
Interestingly, WIF’s social dominance has dropped to 0.215 from 0.287 within a day. While this decrease indicates a slight decline in community engagement, the breach above $2.978 and the subsequent surge suggest that price movements are currently more influenced by technical aspects rather than social sentiments.
However, monitoring social activities remains crucial as renewed participation could amplify WIF’s momentum.
Can the $4.822 mark be reached?
Dogwifhat is currently well-positioned for further advancements, backed by strong technical signals and an uptick in trading volume. The MACD crossover, coupled with the low Stochastic RSI reading and the breakout above the $2.978 support level, indicates resilience in the position.
With the bullish momentum gaining pace, WIF seems on the path to hitting the $4.822 target. Consistent volume and a successful breach of intermediate barriers will be crucial in confirming this upward trend.