Dogecoin With Fidelity Investment (WIF) Can Establish a New All-Time High at $5, but Only If…

Analysis: Dogecoin’s Potential for a $5 All-Time High with Fidelity Investment (WIF) – A Close Look

Over the last 24 hours, dogwifhat [WIF] witnessed a significant drop of 18.98%, triggered by a general market decline.

At the moment, selling pressure seems to be easing as WIF starts to climb. However, some market segments are still bearish, impeding the speed of a potential recovery.

Exploring the Road to Recovery

Analysts suggest that WIF is well-positioned for a rebound as it trades within a parallel channel, oscillating between support and resistance levels.

The current chart pattern indicates a possible extended consolidation phase near the lower support boundary before a notable upswing.

If WIF breaks out of this phase, its next target could be a new high of $5, a level not seen since November 2024.

Market sentiment remains mixed, with some expecting an uptrend while others brace for a downturn.

Buyers Holding the Fort for WIF

WIF’s Funding Rate has steadily increased over the past eight hours, reaching 0.0044% currently, favoring long-position traders.

A positive Funding Rate signals a preference for long positions, with traders paying a premium to maintain their positions.

Spot traders witnessed significant fund outflows, with $1.67 million exiting the market in the last day alone, hinting at a potential price surge.

Continued withdrawals for the fourth consecutive day, with a substantial $11.88 million exit the previous day, suggest participants moving tokens off exchanges, possibly for selling.

Potential Sellers’ Impact on WIF

Selling pressure persists as sellers exert downward force on WIF. Open Interest, a vital indicator, dropped by 10.01% to $403.15 million, signaling waning confidence in the market rally.

$8.51 million in liquidations occurred recently, predominantly affecting long traders, with long positions facing losses of $8.05 million compared to shorts at $459,950.

The notable imbalance between long and short traders often reflects bearish sentiment and raises the likelihood of further price drops.

With the Open Interest decline and liquidation figures, the expected consolidation phase is poised to continue, keeping WIF subdued for now. However, positive on-chain signals could provide new momentum for WIF to approach the $5 mark in the future.