- The asset risks losing its current support level within the bullish pattern it is trading in, potentially leading to a deeper correction.
- Metrics reveal active participation from both long and short traders, but with a clear direction.
dogwifhat [WIF] has been predominantly bearish, with a monthly market performance of -43.11%. However, there are signs that the downtrend may pause in the coming trading sessions.
Before any rally materializes, WIF is likely to experience an additional price drop from its current level. The recent 14.69% decline over the past 24 hours may extend further.
WIF remains bullish but risks a short-term drop
On the chart, WIF has formed a bullish pattern. It has now traded down to the support level of this structure at 1.885, which would typically trigger a bounce. However, significant buying activity at this level has yet to materialize.
If the 1.885 support fails to hold, WIF is likely to lose strength and fall into a range. The next potential support lies at 1.486, where the asset may find the necessary momentum for a bounce.
Source: Trading View
Once a bounce is initiated, WIF will face two key resistance levels on its path to a rally. The first is at 2.895, followed by the upper boundary of the bullish pattern. Overcoming these hurdles could see WIF establishing its next high at $4.830.
A drop in WIF’s price is imminent
The Open Interest (OI) of WIF has been steadily declining. At the time of writing, OI has fallen to $360.94 million, marking an 11.25% decrease.
This decline in OI is driven by derivative traders actively closing their positions as the asset’s price continues to drop. As a result, WIF’s market capitalization has decreased by 14.29% to $1.88 billion, while tradi
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Author: Olayiwola Dolapo
