After a month-long rally, dogwifhat [WIF] has undergone a sharp decline over the past week. At the time of writing, WIF is trading at $2.64. This marks a 5.53% decline on the weekly chart.
Dogwifhat was previously in an uptrend, up 53.72% on the monthly chart.
Despite the bearish weekly chart, the past 24 hours have shown some signs of life, especially with trading activity. In fact, WIF’s trading volume has spiked 79.29% to $402.14 million.
Therefore, the current market situation raises questions about the future trajectory of memecoin.
AMBCrypto analysis shows that dogwifhat is enjoying strong and positive market sentiment at press time.
Accordingly, Market Prophit data shows that WIF's crowd sentiment is positive at 0.1263 while its Buzz Score is 1.098. Similarly, memecoin has a positive crowd sentiment Z-score and Prophit market sentiment Z-score.
So, despite the recent drop, most investors remain optimistic and predict prices will rise in the coming period.
What the WIF chart says
As observed above, WIF is experiencing favorable market conditions that could help memecoin continue its bullish run on the charts.
For example, dogwifhat’s Binance perpetual futures contract shows that the majority of investors are holding long positions. This is indicated by the fact that 86.35% of accounts are long while 13.65% are short.
Such market conditions indicate a bias towards long positions in the perpetual futures market, reflecting investor confidence.
This long-term demand is further reinforced by a positive OI-weighted Funding Ratio.
This has remained positive for the past three weeks, indicating that long position holders have been paying short position holders to hold their trades.
Such market behavior implies that most investors are optimistic and expect prices to continue rising on the charts.
