Dogwifhat (WIF) price experienced noticeable growth in the last 7 days. The price growth in the last 7 days reached 34%, resulting in the price trading at 3.80. When examining the price movements of the cryptocurrency over the last 3 days, it was observed that it moved within a channel model since April 12, encountering resistance at 3.64 dollars and finding support at 2.32 dollars.
Will Dogwifhat Rise?
WIF’s open interest in futures trading saw a clear increase last week. As of the time of writing, the meme coin’s open interest in futures trading was seen at 434 million dollars, with a 38% increase over the last 7 days.
To explain what WIF’s open interest in futures trading is, it would be correct to state that it is the measurement of the total number of open futures contracts that have not yet been closed. The increase in this indicator reveals that there is a rise in the number of traders entering the futures market and opening positions for the asset under review.
When examining the funding rate emerging on the WIF side, the indicators show that investors are taking long positions. As of the time of writing, the rate indicated by the indicator was 0.007%.
To briefly explain the funding rate, it can be said that it is used to keep the contract price in perpetual futures trading close to the spot price. If the mentioned rate has a positive value, it indicates strong demand for long positions.
The increase in WIF’s open interest rate in futures trading and the positive funding rate reveal that participation in the futures market has increased due to the dominant upward trend in the meme coin market. This situation allows investors or institutions to observe an optimistic outlook regarding the future price of the asset under review, leading to the opening of more long positions.
WIF Price Prediction
Despite the upward trend in WIF’s futures market, similar sentiments are not seen in the spot market. Despite the price increase in the token last week, a downward trend in the Chaikin Money Flow (CMF) indicator did not go unnoticed. The CMF indicator reveals the money flows entering and exiting the WIF market.
If a cryptocurrency’s price continues to rise while its CMF declines, a downward breakout may occur. This can be interpreted as the buying volume in the market not being strong enough to sustain the growth despite the price increase. This situation can be seen as a sign that prices may reverse or correct in the coming periods.
If selling pressure possibly surpasses the buying outlook, WIF’s attempt to move above the upper line of the horizontal channel may fail, and the price may fall to 3.19 dollars. However, if the current rally faces more demand for WIF, it can be seen that the meme coin maintains stability above the 3.68 dollar level.
