WIF experienced a sustained surge on monthly charts. But a recent pullback saw it drop by 11.86%.
- WIF declined by 11.86% over the past 24 hours. An analysts eyes a continuation of the monthly uptrend citing Elliot’s wave 3.
Over the past month, dogwifhat [WIF], the fourth largest memecoin by market cap, has experienced a sustained upsurge. As such, on monthly charts, WIF has surged by 35.69% rising from a low of $1.38 to $2.63.
However, over the last week, WIF has experienced a slight decline. In fact, as of this writing, WIF was trading at $2.15. This marked a 0.04% decline on monthly charts with an extension to the bearish trend by 11.86% in 24 hours.
The current market conditions raise questions about whether WIF will recover to reclaim its monthly highs or whether the bearish trend will persist.
Inasmuch, popular crypto analyst Decode Trading suggested that WIF is expected to continue with the uptrend citing the Elliot wave.
Market sentiment
In his analysis, Decode posited that WIF has already made a low in wave 2 and now it’s moving in wave 3. Thus, wave 3 has an internal structure where wave 4 is done and wave 5 is yet to finish and it has already retested the daily channel.
Source: X
What this simply means is that wave 2 is complete which signals the end of the current market correction.
Following this completion, the current prices are in Wave 3 which is usually viewed as the strongest. The internal structure of this wave shows that wave 4 is complete and wave 5 is likely to drive prices higher.
Since WIF has already retested a key support level and held it, this strengthens the bullish outlook.
What WIF’s fundamentals show
Although this technical perspective from the Elliot wave points to a reversal from the recent pullback, it’s essential to determine what underlying fundamentals say.
Source: Coinglass
Firstly, WIF’s supply and demand dynamics as measured by Spot Netflow turned negative three days ago. This suggests a decrease in supply on exchanges.
Such market behavior reduces selling pressure signaling bullish sentiment as investors turn to hold anticipating more gains.
Source: Santiment
Additionally, dogwifhat’s total funding rate aggregated by asset has remained positive for the last 7 days. This suggests that there’s increased capital inflow into WIF among those betting for prices to increase.
Source: Coinglass
Finally, the demand for long positions is further strengthened by a positive OI-weighted funding rate. As such, those taking long positions are willing to pay short for their positions.
Simply put, although WIF has experienced a decline on daily charts, the memecoin is in a good position for long positions.
Therefore, if the current market sentiment holds, dogwifhat will attempt a $2.33 resistance level in the short term. A breakout here will see dogwifhat hit $2.63. Consequently, a further decline will see dogwifhat find its support at $1.90.
Take a Survey: Chance to Win $500 USDT
Previous: XRP: 3 reasons why the altcoin can have a bullish Q4 Next: CFTC to introduce tokenized funds – How will it impact financial markets?
Source
