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- WIF briefly crossed the $4 worth mark.
- Its Chaikin Cash Circulation hints at the potential of a reversal.
Solana-based meme coin dogwifhat [WIF] traded briefly above the $4 worth mark on twenty ninth March to register a brand new all-time excessive, in keeping with CoinMarketCap’s information. At $3.68 per WIF at press time, the memecoin has since witnessed a 7% worth correction.
Regardless of the drop, WIF leads because the crypto asset with essentially the most good points up to now 24 hours. The double-digit worth progress recorded throughout that interval has pushed its market capitalization above $4 billion, making it the third largest meme asset after Dogecoin [DOGE] and Shiba Inu [SHIB].
WIF on a 1-day chart
An evaluation of WIF’s efficiency on a day by day chart revealed an uptick in demand for the meme coin. As of this writing, its key momentum indicators had been positioned above their respective impartial strains.
For instance, WIF’s Relative Energy Index (RSI) was 67.31, whereas its Cash Circulation Index (MFI) was 59.02. These values confirmed that WIF’s spot market contributors most well-liked accumulating the memecoin fairly than promoting it for revenue.
Confirming the bullish pattern, readings from WIF’s Transferring Common Convergence Divergence (MACD) revealed that the MACD line crossed above the sign line on twenty seventh March, ushering within the present bull cycle.
This intersection is taken into account bullish as a result of it signifies that the shorter-term shifting common has moved greater than the longer-term shifting common, presenting a possibility to purchase for revenue.
Supply: WIF/USDT on TradingView
Within the memecoin’s derivatives market, buying and selling quantity has surged by 37% up to now 24 hours, totaling $2.4 billion. Likewise, its open curiosity has elevated by 27% throughout the identical window interval, in keeping with Coinglass’ information.
When an asset’s derivatives market open curiosity will increase, the variety of excellent contracts has risen. This indicators an uptick in market participation.
Excessive open curiosity, mixed with the constructive funding charges that path WIF, confirmed that traders have continued to open bets in favor of a sustained worth rally.
Real looking or not, right here’s WIF’s market cap in BTC’s phrases
A slight pull-back on the horizon?
Regardless of the 360% progress in WIF’s worth within the final month, its Chaikin Cash Circulation (CMF) has trended downward since sixteenth March. This has created a bearish divergence, usually previous an eventual worth correction.
This indicator tracks how cash flows into and out of a crypto asset. The disparity in an asset’s worth motion and CMF implies that the value progress is pushed by a small pool of consumers. It may aso imply that promoting strain could rise regardless of the value rally.
Supply: WIF/USDT on TradingView
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