Why WIF's 19% rise could eclipse SHIB and Dogecoin in the short term
Daily charts of WIF, SHIB and DOGE have turned red but WIF's situation may change soon.
WIF's Open Interest fell along with its price.
The downward trend continued to prevail in SHIB and DOGE.
Meme coins such as Dogwifhat [WIF], Shiba Inu [SHIB], and Dogecoin [DOGE] have attracted attention with volatile price movements in the recent past.
However, when the market situation turned downward, these tokens lost a significant part of their market value.
WIF may soon take off
WIF, one of the newest players in the meme coin ecosystem, has taken the market by storm. It quickly climbed the ladder and overtook PEPE in terms of market capitalization.
This past week has also benefited investors, with the token's value increasing by 19%. However, the situation has reversed as the price has fallen by 9.6% in the last 24 hours.
At the time of this writing, WIF was trading at $3.67 with a market cap of over $3.66 billion. But by a few metrics, things may be turning in investors' favor again.
WIF's Funding Rate has fallen, meaning derivative investors are not buying WIF at its low price. Additionally, Open Interest also decreased.
A drop in the metric usually indicates a trend reversal is likely.
We then checked the 4-hour chart of WIF to see which indicators are recommended. According to our analysis, WIF's Money Flow Index (MFI) has registered a decline from the bearish neutral mark.
However, Chaikin Money Flow (CMF) followed the other route and headed upwards, signaling a price increase. For WIF to start a bull rally, its price may break above the 20-day SMA.
Bollinger Bands also showed that at the time of writing, the WIF price was just below the 20-day SMA.
