- dogwifhat was trading within a descending triangle channel on its one-day chart, suggesting a bearish reversal.
- The negative CMF showed that despite recent gains, selling activity has outpaced buying activity.
dogwifhat [WIF], at press time, traded at $3.22 after a 5% gain in 24 hours. These gains have brought the memecoin’s monthly gains to 54%, with the uptrend attracting long-term holder distribution.
According to Lookonchain, one trader dubbed “blockgraze” has moved 1.5M WIF tokens, valued at $4.56M, to the Coinbase exchange after holding the tokens for 8 months.
While this trader has clarified that he is yet to sell the coins, the movement of these funds coincides with some bearish signs around WIF on its one-day chart.
A descending triangle pattern was evident, suggesting that dogwifhat could head towards a downturn. The support level at $3 is critical for WIF to avoid this bearish trend.
If WIF rallies to overcome resistance at $4.83 and collects liquidity at this level, it will have invalidated this bearish thesis.
Source: TradingView
Technical indicators currently show mixed signals on WIF’s future price movements. The Chaikin Money Flow (CMF) has flipped negative, indicating that sell-side pressure is dominant.
However, the Awesome Oscillator (AO) bars have flipped green, which shows a bullish divergence. As bulls and bears struggle for control, the derivatives market shows that liquidations could determine WIF’s next move.
WIF long liquidations surge
Data from Coinglass shows that a surge in long liquidations might be suppressing WIF’s rally.
In just two days,
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Author: Muthoni Mary
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