- WIF crossed the $4 price mark for some time.
- His Chaikin Money Flow signals the possibility of a reversal.
Solana-based meme coin Dog Hat (WIF) briefly traded above the $4 price mark on March 29 to record a new all-time high. coinmarketcap data. At $3.68 per WIF at press time, Memecoin has seen a 7% price improvement.
Despite the decline, WIF leads as the crypto asset with the most gains in the last 24 hours. The double-digit price growth recorded during that period has pushed its market capitalization above $4 billion, making it the third-largest meme asset behind Dogecoin (DOGE) and Shiba Inu (SHIB).
WIF on 1 day chart
Evaluation of WIF’s performance on the daily chart revealed an increase in demand for the meme coin. At the time of writing, its key momentum indicators were positioned above their respective neutral lines.
For example, WIF’s Relative Strength Index (RSI) was 67.31, while its Money Flow Index (MFI) was 59.02. These values showed that WIF spot market participants preferred to accumulate Memecoin rather than sell it for profit.
Confirming the bullish trend, the WIF Moving Average Convergence Divergence (MACD) readings showed that the MACD line crossed above the signal line on March 27, marking the beginning of the current bullish cycle.
This intersection is considered bullish because it indicates that the short-term moving average has moved above the long-term moving average, presenting an opportunity to buy for profits.
Source: WIF/USDT on TradingView
In the Memecoin derivatives market, trading volume has increased by 37% in the last 24 hours, totaling $2.4 billion. According to CoinGlass data, its open interest has increased by 27% during the same window period.
When open interest in an asset’s derivatives market increases, the number of outstanding contracts increases. This indicates increase in market share.
High open interest combined with positive funding rates post-WIF showed that investors continued to bet in favor of a continued price rally.
Realistic or not, here is the WIF market cap in terms of BTC
A little retreat on the horizon?
Despite a 360% increase in WIF price over the past month, its Chaikin Money Flow (CMF) has been in a downward trend since March 16. This has created a bearish divergence, which often precedes an eventual price correction.
This indicator tracks how money flows in and out of a crypto asset. The asymmetry in the price movement of an asset and the CMF implies that the price rise is driven by a small group of buyers. This could also mean that selling pressure may increase despite the price rise.
Source: WIF/USDT on TradingView
This is an automatic translation of our English version.