12/03/2024
BTC96,201.0
ETH3,633.91
XRP2.74
USDT1.0
SOL228.83
BNB659.1
DOGE0.425528
USDC0.99994
BUSD0.996703
Last news
05/21/2024

WIF struggles in a stagnant market: Bearish sentiment looms

05/21/2024
4,2

The digital currency, dogwifhat [WIF], didn't see the same surge in popularity that meme coins like Pepe [PEPE] and Bonk [BONK] enjoyed recently. WIF was instead caught up in a persistent downtrend on the shorter timelines.

The enthusiasm for acquiring WIF was noticeably low as market speculators remained doubtful about its potential for a rebound. Consequently, those holding dogwifhat are advised to remain patient. The question remains: should they capitalize on the forthcoming price dip, or will there be a turn in their fortunes soon?

A Familiar Hurdle Emerges Yet Again

Over a six-week span, illustrated in purple, WIF's trading activities oscillated between $2.25 and $3.58.

The halfway mark of this range, situated at $2.91, alternately acted as a barrier and a support throughout this period of sideways trading.

The Fibonacci retracement tool, with its pale yellow indicators, pinpointed the $2.57 mark as a pivotal support area, which unfortunately was compromised over the last half-year. This breach maintained the downward trend seen in the longer term charts.

Earlier this month, the bulls' failure to uphold the support at the mid-range level was a clear indicator of the bears gaining the upper hand.

At the time of writing, the RSI lingered below the neutral 50 mark, hinting at a downward momentum, while the CMF stood at -0.16, signaling strong sell-off activities.

For the bulls to neutralize the negative outlook, they need to propel the prices beyond the upper limits of the range and secure that territory as support.

Signs of a Bullish Counter-Movement Emerge

Between May 13th and 19th, there was a slow decline in the prices. On specific days, like the 17th, the Funding Rate rose to +0.01%, and the Open Interest increased even as the prices dipped.

This highlighted that while there was a fresh influx of short sellers, the sentiment wasn't overwhelmingly bearish given the funding rate didn't drop into the negatives. Moreover, during this period, the spot CVD was on a downward trend.

However, a notable shift occurred in the past 48 hours. The spot CVD witnessed a rebound, suggesting a growing demand, and the funding rate experienced a notable increase.

Despite the Open Interest's failed attempt to rise, indicating speculative trades were on pause, the other indicators hinted at the beginnings of a bullish turnaround.

Disclaimer: The content shared herein is for informational purposes only and reflects the author's personal views. It should not be considered as financial, investment, trading, or any other form of advice.


Subscribe to Cryptonica.News
on social networks

The materials found on the Cryptonica website shall not be taken as individual investment recommendations. The financial instruments or operations mentioned therein may not align with your investment profile or objectives. We assume no responsibility for any missing facts or inaccurate information in the texts. Cryptocurrencies are financial assets with high risk and volatility. Therefore, it is crucial that you conduct your own research on financial instruments and make independent decisions. Before engaging in any actions related to cryptocurrency, you shall study, understand, and comply with the laws applicable in your region and country.


How useful is this article for you?
Thank you for your review!

Last news