WIF Faces Challenges and Potential Growth
Dogwifhat [WIF] is currently navigating a turbulent market, with indicators suggesting potential growth while facing significant hurdles. Over the last 24 hours, WIF experienced a sharp drop of 18.98%, driven by broader market decline.
However, selling pressure has started to ease, and WIF is showing signs of recovery. Despite this, some market cohorts remain bearish, hindering upward momentum.
Signs of a Rebound on the Chart
According to analysts, WIF is currently trading within a parallel channel, indicating that it is oscillating between zones of support and resistance. At present, WIF is responding to its support level and showing a slight upward trend.
Chart analysis suggests that the consolidation phase may continue near the lower support level before a significant upward move occurs. If WIF manages to break out of this phase, it could target a new high of $5 — a level last reached in November 2024.
Mixed Market Sentiment
Market sentiment remains divided. While some investors anticipate upward movement, others are preparing for a potential downward trend.
Buyers Keeping WIF Afloat
Over the last eight hours, WIF has seen a gradual increase in its funding rate, which now stands at 0.0044%. A positive funding rate suggests that long-position traders dominate the market and are willing to pay a premium to hold their positions.
Additionally, the spot market has witnessed a significant outflow of funds. In the last 24 hours alone, $1.67 million worth of WIF has been withdrawn from the market, increasing the likelihood of a price increase. This trend has continued for four consecutive days, with the largest outflow — $11.88 million — recorded the day before.
Fund withdrawals from exchanges often indicate that investors are moving their tokens to private wallets, signaling either planned selling or long-term holding.
Sellers Remain Active
Despite some positive signals, sellers are still exerting downward pressure on WIF. Open interest (OI) has decreased by 10.01% to $403.15 million, suggesting that traders are closing their derivative contracts rather than holding them, reflecting a lack of confidence in market growth.
Additionally, $8.51 million was liquidated over the past day, with long positions bearing the brunt of the losses ($8.05 million) compared to just $459,950 for short positions. This significant disparity reflects a bearish market sentiment, increasing the likelihood of further price declines for WIF.
Next Steps: Consolidation or Breakout?
Based on current data, WIF is likely to remain in a consolidation phase until stronger market catalysts emerge. However, if bullish on-chain indicators strengthen, WIF could find a new momentum to move toward $5 in the near future.
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