Markets
WIF struggles in a stagnant market: bearish sentiment looms
- WIF couldn’t find the buyers it needed to get past the six-week range.
- Further losses could follow due to weak demand.
dogwifhat [WIF] was not part of the resurgence of the same coins as other tokens such as Pepe [PEPE] Or Bonk [BONK] witnessed in recent days. Instead, WIF continued to struggle with a downward trend over a shorter period.
Buying pressure was weak and speculators were not convinced that WIF would recover. Therefore, dogwifhat investors need to be patient. Should they consider buying on the next dip, or will their fortunes change soon?
The mid-range level was once again an obstacle
Source: WIF/USDT on TradingView
WIF continued to trade within the six-week range highlighted in purple. The range was from $2.25 to $3.58.
The mid-level at $2.91 served as both resistance and support during range-bound price action.
Fibonacci retracement levels (pale yellow) highlighted the $2.57 level as critical support, but it has been breached over the past six months. This is why the bearish bias on the longer time frame has always prevailed.
The bulls’ inability to defend intermediate support earlier this month was a sign that the bears had the advantage.
The RSI was also below 50 at press time, an early sign of downward momentum. The CMF was at -0.16 to indicate significant selling pressure.
To overcome the bearish outlook, bulls must push prices above the range highs and reclaim the area as support.
Indications that the bulls have started to fight back
Source: Coinanalyze
From May 13 to 19, prices experienced a slow downward trend. On some days, like the 17th, the funding rate was at +0.01% while open interest increased while prices fell.
This indicated that some short sellers were entering the market, but this was not overwhelming since the funding rate was not negative. This reflected bearish sentiment. Spot CVD was also in decline.
Read What is going on [WIF] Price prediction 2024-25
A lot has changed in the last two days. The spot CVD recovered to reflect the increase in demand and the funding rate increased.
Open Interest unsuccessfully attempted to climb higher, suggesting that speculative activity was still marginalized. However, the other two indicators showed the first signs of a bullish reversal.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.