Dogwifhat (WIF), Pepe (PEPE), or Bonk (BONK) have seen meme token movements recently. WIF continues to struggle with a lower timeframe downtrend.
Resistance and Support Levels in WIF
Buying pressure in the cryptocurrency is weak, and analysts have low expectations for WIF’s recovery. Therefore, investors need to be patient. Should investors consider buying the upcoming dip, or will their luck change soon? WIF continued to trade in a six-week range. The range extended from $2.25 to $3.58. The mid-range level of $2.91 acted as both resistance and support during the range-bound price movement.
Fibonacci retracement levels highlighted the $2.57 level as critical support. However, this level was breached in the last six months. Therefore, the longer timeframe downtrend still persists. The failure of bulls to defend the mid-level support earlier this month might indicate an advantage for bears. The relative strength index (RSI) was below neutral 50 at the time of writing, serving as an early sign of downward momentum.
Current Data on WIF
CMF was at -0.16, indicating significant selling pressure. To overcome the bearish outlook, bulls need to push prices above the highest levels of the range and reclaim the area as support. Between May 13-19, prices were slowly trending downward. On specific days like the 17th, the funding rate was +0.01% while open interest rose, and prices fell.
This indicated that some short-sellers entered the market, but since the funding rate was not negative, it wasn’t too challenging. This reflected the bearish trend. Spot CVD was also declining. Most of this changed in the last two days. Spot CVD in the altcoin recovered, reflecting increased demand, and the funding rate rose. Open interest tried to climb higher but failed. This shows that speculative activities are still on the sidelines. However, the other two indicators might show early signs of a bullish trend.
