During the recent month, meme-based cryptocurrencies have experienced notable growth, with dogwifhat [WIF] standing out as a top performer. Consequently, WIF has recorded substantial increases during this period.
However, at the time of writing, dogwifhat was priced at $2.37, indicating an 8.08% decrease in value over the last 24 hours.
Prior to this decrease, WIF had been on an upward trend, rising by 36.53% on a monthly basis and continuing this surge with a 13.73% increase on weekly charts.
As a result, it becomes crucial to ponder whether the current upward momentum of dogwifhat can be sustained or if a dip on the daily chart might signify an impending retracement.
Analysis of WIF Charts
Analysis by CryptoCrypto revealed that following its peak at $2.8 three days ago, dogwifhat encountered a significant drop, plummeting by 17.86% during this period.
This decline raised doubts regarding the future path of the meme coin, emphasizing the importance of evaluating other key indicators.
To begin with, WIF’s Relative Strength Index (RSI) declined from 66 to 54 within three days, indicating a prevalent selling pressure from sellers.
The ongoing trend displayed signs of weakness, hinting at a possible reversal in WIF’s price trajectory.
Further validating this weakening trend was the dominance of the negative index over the positive index on DMI. Currently, the negative index stood at 27, while the positive index was at 25.
The decreasing +DMI indicated a loss of momentum in the current trend.
Delving deeper, the Open Interest for dogwifhat per exchange dropped from $257.3 million to $207.2 million over the past three days, suggesting that traders were closing their positions.
This behavior reflects a lack of confidence as traders anticipate a further downturn.
Lastly, the Long/Short Ratio for dogwifhat diminished in the last three days, decreasing from a peak of 1.0072 to 0.8477. Consequently, there was a prevalence of short position holders, highlighting a bearish sentiment among more sellers.
In summary, although WIF is currently in a predominantly bullish phase, recent observations point towards an impending correction. Therefore, if the bearish trend persists, WIF is likely to seek support at $2.03 in the near term.
Alternatively, should the bulls regain control following this correction, they may attempt to breach the formidable resistance level at $2.8. A successful breakout above this point could propel WIF to reach a four-month high of approximately $3.5.