Dogwifhat (WIF) Shows Early Signs of Rebound Despite Recent Decline
Dogwifhat (WIF), the meme coin that captivated the crypto market earlier this year, has seen a 23.76% drop in the last seven days. Despite this, early indicators suggest a potential rebound. BeInCrypto’s analysis highlights the determination of bulls to drive WIF’s value higher, though challenges remain.
Bullish Indicators Emerging
Recently, WIF experienced a 39.55% decline between June 5 and 24, dropping from $3.42 to $1.60. However, it quickly rebounded to $2.25 by July 1 before facing renewed selling pressure. The daily chart now shows positive signs, particularly with the Cumulative Volume Delta (CVD). The CVD's green bar indicates buyers have edged out sellers by over $307,950, suggesting potential resilience against dropping below $1.70.
On-Chain Analysis Support
On-chain analysis, bolstered by Open Interest (OI), also supports this potential. WIF’s OI stands at $166.70 million, an improvement from July 7. Open Interest reflects the total of open contracts in the market; an increase signifies aggressive buying. For WIF’s price increase to be validated, OI must continue to rise.
Technical Analysis
Technical indicators also show promise. The Moving Average Convergence Divergence (MACD) is above the signal line, indicating bullish momentum. This suggests an entry point between $1.68 and $1.72 could yield gains as WIF attempts to retest $2.11. However, a clear path above $2 is not yet established. Sustained bullish momentum is crucial to surpass this mark, while renewed selling pressure could see WIF drop below $1.60.
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Disclaimer: This is not financial advice. Investing in cryptocurrencies involves risk, and you should conduct your own research or consult with a financial advisor before making any investment decisions.**
