Despite the continued dominance of long-term traders in the dogwifhat (WIF) market, technical indicators suggest a mixed outlook. The price is currently trading in a descending triangular channel, indicating a potential bearish reversal.
WIF Price in a Descending Triangle
Currently, WIF is trading at $3.22, reflecting a 5% daily gain and monthly growth of 54%. However, this upward trend has drawn the attention of long-term holders, who are beginning to distribute their tokens.
For instance, data from Lookonchain shows that a trader known as "blockgraze" moved 1.5 million WIF tokens worth $4.56 million to Coinbase. While the trader has clarified that they have not sold the coins yet, this movement coincides with bearish signals on WIF's daily chart.
Critical Support and Resistance Levels
The chart reveals a descending triangle pattern, signaling potential downside risks. The key support level at $3 is critical for WIF. Maintaining this level could stabilize the price.
Conversely, a breakout above $4.83 would invalidate the bearish scenario, attracting new liquidity and paving the way for further price growth.
Technical Indicators: Mixed Signals
Chaikin Money Flow (CMF): Currently negative, indicating dominant selling pressure.
Awesome Oscillator (AO): Green bars suggest a bullish divergence.
This conflict between indicators highlights the battle between bulls and bears for control of the market's next move.
Increase in Long Liquidations Slowing the Rally
According to data from Coinglass, over $5 million in WIF long positions were liquidated within two days. These liquidations disrupt market momentum as traders are forced to close positions, triggering additional selling pressure.
A heatmap of WIF liquidations shows that these events occur frequently during failed breakout attempts. If WIF falls below $3, liquidations could push the price even lower.
Historically High Funding Rates
Despite these challenges, bullish sentiment among traders remains strong. WIF funding rates have reached an all-time high of 0.0555%, indicating that traders are willing to pay a premium to maintain their long positions.
However, caution is advised. An unexpected price drop could lead to further liquidations, amplifying the downward trend and significantly impacting WIF's future price trajectory.
#dogwifhat , #memecoin🚀🚀🚀 , #priceprediction , #CryptoNewss , #MemeCommunity
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
