đ AMBCrypto: $WIF on a 1-day chart
An assessment of WIFâs performance on a daily chart revealed an uptick in demand for the meme coin. As of this writing, its key momentum indicators were positioned above their respective neutral lines.
For example, WIFâs Relative Strength Index (RSI) was 67.31, while its Money Flow Index (MFI) was 59.02. These values showed that WIFâs spot market participants preferred accumulating the memecoin rather than selling it for profit.Â
Confirming the bullish trend, readings from WIFâs Moving Average Convergence Divergence (MACD) revealed that the MACD line crossed above the signal line on 27th March, ushering in the current bull cycle.
This intersection is considered bullish because it indicates that the shorter-term moving average has moved higher than the longer-term moving average, presenting an opportunity to buy for profit.Â
In the memecoinâs derivatives market, trading volume has surged by 37% in the past 24 hours, totaling $2.4 billion. Likewise, its open interest has increased by 27% during the same window period, according to Coinglassâ data.
When an assetâs derivatives market open interest increases, the number of outstanding contracts has risen. This signals an uptick in market participation.Â
High open interest, combined with the positive funding rates that trail WIF, showed that investors have continued to open bets in favor of a sustained price rally.
Despite the 360% growth in WIFâs price in the last month, its Chaikin Money Flow (CMF) has trended downward since 16th March. This has created a bearish divergence, often preceding an eventual price correction.
This indicator tracks how money flows into and out of a crypto asset. The disparity in an assetâs price movement and CMF implies that the price growth is driven by a small pool of buyers. It could aso mean that selling pressure may rise despite the price rally.
