Memecoins
WIF Cryptocurrency Price Prediction: Will Memecoin Reach $10 During Recent Drop?
- A break above the $3.25 resistance could send the WIF to $6.50.
- The stablecoin offering demonstrated that market participants had the purchasing power to drive the price higher.
Memecoin based on Solana dogwifthat [WIF] it has lost 16.36% of its value in the last 30 days.
This performance was in contrast to the price action that saw WIF produce a stunning 1,650% year-on-year (YTD) increase.
Not many cryptocurrencies can boast of this achievement this year. But with a solid community, WIF has been able to outperform almost all other popular memecoins this cycle.
At the time of this writing, the price of WIF was $3.02. But before this recent drop, the token had been approaching $5. However, the attempt was rejected at $4.84, its all-time high.
The bulls have the upper hand
Despite the fall, many market participants are confident that the token will soon reach a new high. For some, the cryptocurrency could reach $10. For others, a 5x increase to $15 remains plausible price forecast.
If the WIF reaches $10, it means the project’s market capitalization could exceed $10 billion. However, it is important to consider the possibility before concluding.
The first AMBCrypto indicator considered it was his financing rate. If financing is positive, it means that the price of an asset is trading at a premium to the value of the index.
In this case, most bets lean towards the bullish side. On the other hand, negative financing means that the price of a cryptocurrency is discounted to the spot value.
This also indicates broader bearish sentiment in the derivatives market.
As of this writing, the WIF funding rate was 0.008%, lower than seven days ago. But one thing we have observed is that the price of WIF has increased in the last hour.
Source: Santimento
A suitable inference for this movement is that a portion of the spot volume was made up of buy orders. Therefore, the price of WIF may be set to rebound.
WIF needs to break $3.25
Validation of this bullish forecast could send WIF towards $3.65 to begin with. Regarding long-term goals, AMBCrypto analyzed the token from a technical point of view.
On the 4-hour chart, the Supertrend has launched a buy signal (green) at $3. However, there was a selling wall (red) at $3.25. Previously, the WIF attempted to overcome this resistance,
However, the bears rejected the move, bringing the price back to the brink of a decline to $2.76. However, the Money Flow Index (MFI) showed that the WIF may not fall that low.
This is because the MFI reading was close to 60.00, indicating that a good amount of liquidity has flowed into the WIF side of the cryptocurrency market.
If this reading continues to rise, the bulls may do so break through successfully the $3.25 resistance. However, the Relative Strength Index (RSI) was below the midpoint.
But the reading showed signs that it could rise above 50.00, to validate the bullish momentum. If so, WIF could be a move towards $6.50.
However, a highly bullish situation could push the WIF price to $10 in the long term.
Source: TradingView
For some, this could happen before the end of 2024. Others, however, believe that the memecoin price may not reach double digits this year.
Open Interest drops but it’s not the end
Additionally, WIF’s Open Interest (OI) stood at $251.38 million at the time of writing. OI increases or decreases based on net positioning. If the indicator increases, it implies an increase in the liquidity allocated to contracts.
In this situation, buyers are aggressive. In contrast, sellers are aggressive when OI declines. According to Santiment data, WIF OI was almost two times lower than the March value.
If traders decide to open more positions, the price of WIF could do so recover. However, it would take a lot of capital to bring the token back to its previous high.
But AMBCrypto noted that it may not be difficult to accomplish. This is due to the supply of stablecoins, held by WIF whales, and valued at over $5 million.
Source: Santimento
At the time of this writing, this metric had begun to rise, pointing that large WIF investors were armed enough to push the price higher.
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If stablecoins were used to purchase the token, there could be a significant increase in price.
However, it may be impossible for WIF to repeat its 883% increase in 90 days. However, a rise to $10 is a possibility for the token. If (when) this will happen is something AMBCrypto cannot guarantee.