WIF bulls may experience a roadblock as negative sentiments linger in the market.
- WIF’s price rose by double digits in the last week. However, bulls do not yet have a clear path to victory.
The price of leading meme coin dogwifhat [WIF] crossed above its 20-day small moving average on the 3rd of May, and the token’s price has since risen by 20%.
When an asset’s price rises above its 20-day SMA, it suggests that the short-term trend for the asset is upward.
Market participants interpret this to mean that the asset’s current price is higher than the average price of the past 20 days, suggesting that buyers may be in control, and the price may continue to climb.
WIF’s next direction?
According to CoinMarketCap, at press time, WIF exchanged hands at $3.26.
The meme coin’s Fibonacci retracement assessed on a one-day chart revealed that if bullish sentiment persists, its next price point is $3.86.
For this to happen, there has to be a sustained demand for WIF. However, readings from the token’s key momentum indicators showed that the market is generally in a state of balance between buyers and sellers.
As of this writing, WIF’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 55.06 and 50.51, respectively.
These values showed that neither WIF buyers nor sellers clearly controlled the market at press time.
Further, WIF’s Chaikin Money Flow (CMF) was in a downtrend at the time of writing. This indicator measures the flow of money into and out of the asset over a specified period of time.
This CMF decline occurred during the same period when WIF’s price recorded a rally, thereby creating a bearish divergence.
This negative divergence is often interpreted as a signal of a potential reversal in the price trend.
If it persists, WIF’s price may lose momentum, and a correction may follow, as it means that the rally can no longer be backed by any real demand.
If this happens, and the bullish projection made above is invalidated, WIF’s price may fall under $3 to exchange hands at $2.8.
Source: WIF/USDT on TradingView
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It is also key to note that although WIF’s price has recorded gains in the past few weeks, bearish sentiments remain in the market.
According to Santiment, despite last week’s double-digit price rally, WIF’s Weighted Sentiment has remained negative, sitting at -0.46 at press time.
Source: Santiment
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