Dowgifhat [WIF], ranked as the fourth largest meme-based cryptocurrency by market capitalization, has witnessed a substantial upsurge in its value over the last month. This positive trend has led to a notable recovery in the price of WIF.
Currently, the trading price of WIF stands at $1.99, reflecting an impressive 29.74% increase over the course of the past week.
During this period, there has been a significant increase in demand for the memecoin, particularly in trading activities. Consequently, the trading volume of WIF has surged by 116.2% to reach $727.7 million within a 24-hour timeframe.
The notable rise in trading volume alongside substantial price gains indicates a shift in market sentiment.
Analysis of Market prophit reveals that WIF is currently benefiting from positive market sentiment, with a Buzz score of 1.4 and a crowd sentiment of 0.1.
Evaluation of WIF’s Price Trends
It is evident that the prevailing market sentiment positions Dowgifhat for further price increases.
Primarily, Dowgifhat’s Directional Movement Index (DMI) demonstrates a strong uptrend, with the positive index at 31.06, surpassing the negative index of 15.1.
This signifies that the bullish momentum outweighs the bearish momentum, indicating a trend favoring price increases.
Moreover, there has been a notable spike in total liquidation for short positions related to WIF over the last three days. Specifically, the last 24 hours have witnessed $2.3 million in total liquidation for short positions.
This suggests that traders betting against the market are being compelled to exit their positions, while holders of long positions continue to maintain their trades.
This trend is further supported by a positive funding rate across various exchanges. According to data from Santiment, the funding rate has remained positive over the past week, signaling a higher demand for long positions compared to short positions.
It indicates that investors are willing to pay a premium to hold onto their positions.
Furthermore, an examination of Coinglass data illustrates that bullish market sentiment persists, evident through a positive weighted funding rate. This aligns with the earlier observation, indicating a prevalence of traders taking long positions.
Consequently, the current market sentiment leans towards favoring the memecoin.
If the existing market conditions persist, WIF is expected to surpass the next significant resistance level at $2.36. A breakthrough at this level would propel Dowgifhat to reach a two-month high around $2.9.