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Dogwifhat (WIF) Flashes a Buy Signal as It Rallies Toward Resistance

2 mins
Updated by Ryan James
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In Brief

  • In the last week, the demand for WIF spiked, and its price rallied by double digits.
  • Its futures traders remain bullish as its open interest rises while its funding rate remains positive.
  • However, key indicators on WIF’s price chart hinted at the possibility of a price correction in the short term.
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Dogwifhat (WIF) has exchanged hands at $3.45, having grown by 22% in the last week. 

An assessment of the coin’s price movements on a 3-day chart revealed that it has trended within a horizontal channel pattern since April 12, witnessing resistance at $3.64 and finding support at $2.32.

Dogwifhat Traders Maintain Bullish Outlook

WIF’s futures open interest has rallied significantly in the last week. At $434 million at the time of press, the meme coin’s futures open interest has surged by 38% in the past seven days. 

WIF Open Interest
Dogwifhat Open Interest. Source: Coinglass

WIF’s futures open interest measures the total number of outstanding futures contracts that have not been closed or settled yet. When it surges, it suggests an uptick in the number of traders entering the futures market for that asset and taking positions.

A look at WIF’s funding rate showed that these traders have been taking long positions. As of this writing, it was 0.007%. 

Funding rates are used in perpetual futures contracts to ensure the contract price stays close to the spot price. When its value is positive, it suggests a strong demand for long positions. 

Read More: 5 Best Dogwifhat (WIF) Wallets To Consider In 2024

WIF Funding Rate
Dogwifhat Funding Rate. Source: Coinglass

The rise in WIF’s futures open interest and positive funding rate suggests that there is increasing participation in the meme coin’s futures market, with the prevailing bullish sentiment. Its traders are optimistic about the asset’s future price, leading to more long positions being taken.

WIF Price Prediction: Is There a Catch?

Despite the bullish outlook in WIF’s futures market, its spot market participants do not share similar sentiments. 

Despite the token’s price surge last week, its Chaikin Money Flow (CMF) trended downward, thereby creating a bearish divergence. The indicator measures money flows into and out of the WIF market.

A bearish divergence occurs when an asset’s price increases while the value of its CMF drops. This means that despite the price rally, the buying volume in the market is not strong enough to sustain the growth. It is a sign of a price reversal or correction in the near future.

Dogwifhat Analysis
Dogwifhat Analysis. Source: TradingView

If selling pressure outweighs buying momentum, WIF’s attempt to cross above the upper line of the horizontal channel may be hindered, forcing its price down to $3.19.

Read More: Dogwifhat (WIF) Price Prediction 2024/2025/2030

Dogwifhat Analysis.
Dogwifhat Analysis. Source: TradingView

However, if the current rally is backed by even more demand for WIF, the meme coin’s price may rally toward $3.68. 

Top crypto platforms | June 2024

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a seasoned cryptocurrency research journalist with a diverse skill set spanning blockchain analysis, technical research, and content creation. He was a prominent figure at AMBCrypto, where he played a pivotal role in conducting market analysis and technical assessments of various cryptocurrencies and digital assets. His proficiency in utilizing on-chain analytics tools, such as Messari, Santiment, DefiLlama, and Dune Analytics, enabled him to gather and analyze on-chain...
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