One of the meme coins that marked the recent period, Dogwifhat (WIF), continues to trade below the strong range due to the failure of the breakout at the end of May. The decline in trading volume is noticeable and may provide clues about the current market outlook. While the meme coin has been going through a consolidation phase since April, a slow but steady price increase has also been observed. Bitcoin‘s (BTC) volatile price movement over the past two months makes WIF’s performance significant.
Will WIF Price Drop?
WIF reached a period peak of $4.08 on May 29. Since then, it has lost 18.5% in value. As of the time of writing, it continues to find buyers below the resistance level of $3.4, which is also the 50% Fibonacci retracement level.
The daily chart reflected a slight upward momentum, with the RSI value indicating 54. Additionally, the OBV was moving within a certain range similar to the price, suggesting that WIF might continue to move within the range until a new peak is formed.
The stagnant appearance on the OBV side indicates a balance between buyers and sellers, which generally suggests a consolidation phase. The mid-support level of $2.9 in the lower region is considered the next support level where the token might bounce.
The Future of WIF and Investors
In the past few days, it was observed that the open interest rate increased with each rise in the Dogwifhat price. The increase in open interest indicated that investors’ confidence in WIF’s rise was renewed, and whether they are right will be revealed in the coming periods.
With each short-term price increase on the WIF side, regular corrections were observed following the gains made from the sales. Despite this, the upward trend in OI continued to make its presence felt.
The current situation suggested that investors who believe in WIF’s rise are willing to engage in long-term trades, creating a positive outlook parallel to the rising funds ratio. Despite all these values, there appeared to be a lack of demand. The spot CVD value reflected this by showing a downward trend.
