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Dogwifhat (WIF), the meme coin that took the crypto market by storm in the first quarter of the year, has dropped 23.76% in the last seven days. However, WIF is showing early signs of a rebound even though several indicators continue to give mixed signals.
While the road to respite may be challenging, BeInCrypto’s deep dive shows that bulls seem determined to drive a higher value for the crypto.
Dogwifhat Bulls Threaten Bearish Supremacy
Recently, WIF encountered a 39.55% decrease between June 5 and 24. During this period, the price fell from $3.42 to $1.60.
However, the token did not take long to rebound to $2.25 on July 1, only to be faced with selling pressure that drove it back to June lows.
According to the daily chart, things seem to be changing in WIF’s favor. This is because of the signs shown by the Cumulative Volume Delta (CVD).
The CVD displays changes in the volume traded by buyers and sellers. If the CVD prints a green bar, it means that the volume change is above zero, and buying pressure outpaces selling pressure.
Read More: What Is Dogwifhat (WIF)?
On the other hand, a red bar for the indicator shows that sellers are dominant in the market. As shown above, the CVD on WIF’s daily chart is green. This position implies that buyers edged sellers by over $307,950.
Should bulls keep up with this dominance, WIF may resist trading below $1.70 again. Instead, the price of the meme coin could be eyeing a higher value.
Furthermore, on-chain analysis, backed by the Open Interest (OI) is a party to this potential. According to Santiment, Dogwifhat’s OI is $166.70 million.
Though this is a low value compared to July 6, it is an improvement from the figure for Sunday, July 7.
Open Interest refers to the sum of all open contracts in the market. When it increases, buyers are aggressive and increase their net positions. However, a decrease implies that market participants are closing positions and taking their capital out.
While WIF has shown signs of a potential price increase on the chart, the OI has to increase exponentially with it to validate the jump.
WIF Price Prediction: A 20% Rally Is Possible
Another examination of the technical state of the memecoin shows that the Moving Average Convergence Divergence (MACD) sits above the signal line.
The MACD indicates momentum using the difference between two moving averages—specifically, the 26 EMA (orange) and 12 EMA (blue). The indicator also helps spot entry and exit points.
A positive reading of the MACD indicates a bullish momentum, while a negative reading suggests otherwise. Thus, the reading at press time suggests that WIF’s momentum is bullish, and an entry between $1.68 and $1.72 could yield gains as the price attempts to retest $2.11.
Read More: 5 Best Dogwifhat (WIF) Wallets To Consider In 2024
It is worth noting that WIF does not yet have a clear path above $2. To validate the thesis, bulls must sustain the current momentum and kick off whatever dominance bears want.
If this happens, the WIF’s price may rise above the landmark. But in the event that selling pressure takes over the meme coin market again, this will be invalidated. Should that be the case, WIF will drop below $1.60 again.