WIF Price Analysis

WIF’s value has dropped by nearly 86% from its November 2024 peak.
While the RSI flashed a mild bullish divergence, overall derivatives data still underlined a bearish edge.

Despite brief optimism following Trump’s announcement of a forthcoming U.S. Crypto Reserve, the cryptocurrency markets have experienced continued sideways movement over the last 48 hours. Dogwifhat’s (WIF) price peaked at around $4.8 in November 2024, but since then, it has been making lower highs and lower lows on the charts.

At press time, the altcoin was trading below its 20 EMA, 50 EMA, and 200 EMA, indicating strong bearish sentiment.

Gauging WIF’s Potential to Rebound

A review of the past several months displays a steep downtrend, with WIF down nearly 86% from its November highs. The daily chart revealed WIF’s price is compressed within a falling wedge structure, formed since the December highs. At press time, this channel’s lower boundary appeared to provide reliable dynamic support throughout the downtrend. However, the latest break outside the pattern may predispose WIF to high volatility in the near term.

The nearest dynamic resistance was the 20-day EMA, with the first major level around $1.4, still far from current price levels. Buyers should seek a convincing move towards the 50 EMA to gauge the chances of a stronger uptrend; reclaiming this would serve as a more convincing bullish signal.

Immediate support is noted around $0.55–$0.56, near the altcoin’s yearly low. A break below this level could trigger another steep downtrend under bearish pressure.

The RSI was hovering near 39–40, reflecting a strong bearish edge. Any move above 50 would hint at potential momentum changes. The RSI also exhibited a mild bullish divergence with the price action, although a close above the midline would confirm this.

Given the current uncertainty in the crypto markets, it’s advisable to identify multiple bullish signals before entering a long position.

Derivatives Data Revealed

A drop in volume indicated lower trading activity or waning volatility in the last 24 hours, generally occurring during periods of uncertainty regarding near-term price direction or after many positions have been closed. Significant drops in open interest often suggest many positions are being liquidated. Another dip could result in slower price movement unless a new catalyst emerges.

Overall, the long/short ratio over the past 24 hours hovered slightly below 1, suggesting a marginal bias towards more shorts than longs, although this ratio favored bulls on exchanges such as Binance and OKX.