Must see! dogwifhat: Potential adjustment risks under the bullish pattern of WIF, are you ready?

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dogwifhat [WIF] has mainly been bearish, with a monthly market performance of -43.11%. However, there are signs that the downward trend may pause in the coming trading days.

Before any rebound occurs, the price of WIF is likely to drop further from the current level. The recent 14.69% drop in the past 24 hours may further expand.

WIF has formed a bullish pattern. Currently, this currency pair has dropped to the support level of 1.885, which usually triggers a rebound. However, significant buying activity at this level has not yet materialized.

If the 1.885 support level cannot be maintained, WIF may lose momentum and fall into a range. The next potential support level is at 1.486, where the asset may find the momentum needed for a rebound.

Once a rebound begins, WIF will face two key resistance levels during the rebound process. The first is 2.895, followed by the upper boundary of the bullish pattern. After breaking through these obstacles, WIF may reach the next high point of $4.830.

WIF's open interest (OI) has been steadily declining. As of the time of writing, OI has dropped to $360.94 million, a decrease of 11.25%.

The decline in open interest is due to derivatives traders actively closing positions as the asset price continues to fall. As a result, WIF's market capitalization has decreased by 14.29% to $1.88 billion, while trading volume has plummeted by 44.16% to $496.58 million.

In addition, market sentiment has shifted, with the number of short contracts exceeding long contracts, currently with a long-short ratio of 0.89, indicating that short positions outnumber long positions.

When this ratio remains below 1, it signifies that the market is predominantly bearish.

The Average Directional Index (ADX) further supports the possibility of price decline, currently at 30.19, indicating a strong bearish trend. An increase in ADX during a price decline indicates that bearish momentum is strengthening.

Market bullish sentiment continues to exist, supported by the Chaikin Money Flow (CMF), which is on an upward trend and approaching the zero line threshold.

When the CMF trend rises, it indicates that buying volume exceeds selling volume, suggesting an imminent upward reversal. If the CMF crosses the neutral zero line, it may drive prices up.

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