- WIF could not find the buyers it needed to break out past the six-week range.
More losses could follow due to weak demand.
As a seasoned crypto investor with a few battle scars from past market downturns, I’ve learned to remain patient and cautious during periods of market uncertainty. WIF‘s inability to break out of its six-week range is concerning, and the weak demand suggests more losses could follow.
WIF, unlike other meme coins such as PEPE and BONK, didn’t experience a surge in recent days. Instead, it persisted in a downward trend on shorter timeframes.
Investors in WIF have faced lackluster buying demand from the market, leaving speculators uncertain about the potential for a rally. It may be wise for them to practice patience and consider their next move carefully. Should they prepare to buy during any upcoming price dips, or is a positive shift on the horizon?
The mid-range level was an obstacle once more
I analyzed the trading pattern of WIF over the past six weeks and noticed that its price remained within the identified range, which was marked in purple on the chart. This range encompassed a low of $2.25 and a high of $3.58.
At the mid-level of $2.91, there has been a noticeable interplay between resistance and support in the price movement that has remained within a defined range.
On the chart, the significant support level marked by Fibonacci retracement lines (depicted in pale yellow) at $2.57 was emphasized. However, this level was violated over the past six months, suggesting that the prevailing bearish sentiment on the extended timeframe remains robust.
Earlier this month, the mid-range support for the bulls failed to be held, indicating that the bears were in control.
At the current moment, the Relative Strength Index (RSI) had dipped below the neutral 50 level, implying that the price trend might be turning bearish. Furthermore, the Composite Moving Average (CMF) was registering a reading of -0.16, signaling substantial selling pressure in the market.
As a market analyst, I would recommend that in order to counteract the bearish sentiment, bulls need to push prices beyond the existing resistance levels and subsequently establish these areas as new support zones.
Clues that the bulls have begun to fight back
Between May 13 and May 19, prices exhibited a gradual decrease. On specific days, like May 17, the Funding Rate stood at a positive 0.01% concurrently with rising Open Interest as prices declined.
Some short sellers joined the market, as signaled by this data, yet the influx wasn’t massive because the funding rate remained positive. This situation suggested a bearish outlook, and the downward trend in the spot Calculated Value Differential (CVD) further supported this perspective.
Read dogwifhat’s [WIF] Price Prediction 2024-25
Over the last two days, there have been significant shifts. The selected spot for Cardiovascular Disease (CVD) mirrored heightened demand, leading to an increase in funding rates.
As a crypto investor, I’ve noticed that open interest failed to gain traction and reach new heights, indicating that speculative activity was yet to pick up momentum. However, I’ve seen some promising signs from the other two indicators. They hinted at an early bullish reversal in the market.
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2024-05-21 15:03