The bullish momentum of dogwifhat’s [WIF] has gained significant traction following an impressive weekly increase of 48.19%. This upward trend has now extended to the daily timeframe, with a further surge of 27%, setting the stage for potential continued upward movement.
Various metrics provide diverse perspectives on the ongoing rally, offering insights into the future price trajectory of the asset.
WIF Benefits from Symmetrical Triangle Formation
Currently, WIF is trading within a symmetrical triangle pattern, known to be a catalyst for bullish activity that often leads to a price movement towards the peak of the pattern—and possibly even surpassing it.
The projected peak of this channel stands at $4.860. In order for the rally to fully materialize and trigger significant upward movement, WIF must first breach the resistance line sitting at $2.918, potentially transforming it into a support level.
With the short-term target set at $4.080 and a secondary target of $4.860, there is potential for a breakout that could establish new all-time highs for WIF.
Further analysis from CryptoCrypto indicates a high probability of an impending rally for the asset.
Positive Indicators for Continued Upside in WIF
Using the Aroon Line, CryptoCrypto has identified a predominantly bullish market trend that could further propel WIF’s uptrend.
The Aroon Line, a technical tool evaluating trend strength and direction, consists of two segments: Aroon Up (orange) and Aroon Down (blue).
When the Aroon Up line surpasses the Aroon Down line, it signifies a bullish market sentiment. Presently, Aroon Up sits at 100.00%, while Aroon Down is at 50.00%, indicating a likely continuation of the bullish momentum.
Moreover, the Relative Strength Index (RSI) shows an upward trend, staying in the positive zone. With RSI currently at 66.27, strong bullish sentiment is evident, positioning WIF for further upward movement if this trend persists.
Neutral-to-Mixed Market Sentiment
Open Interest, a measure of outstanding derivative contracts, has notably increased by 23.27%, indicating a favorable market state.
This uptick suggests a significant influx of long positions over the past 24 hours, amounting to a total value of $549.55 million.
On the other hand, liquidation data shows a near-equal distribution between long and short liquidations, reflecting a neutral market sentiment.
Long liquidations reached $4.30 million, while short liquidations were at $4.52 million. Additionally, the long/short ratio stands at 0.9786, hovering near neutrality.
Should these metrics shift towards a more bullish bias, WIF could be primed for a substantial surge.