How Realistic Is the WIF Price of $5 After the Recent 20% Price Increase?
Journalist
- WIF prices have risen by double digits over the past week.
- Bulls are not on their way to victory yet.
Dogwifhat is the leading meme coin. [WIF] The token price has increased by 20% since May 3, when it crossed above its 20-day moving average.
When an asset’s price is above its 20-day SMA, it indicates that the asset’s short-term trend is upward.
This is interpreted by market participants as a sign that the asset’s current price is higher than its average price over the past 20 days. It suggests that buyers are in control and the price could continue to rise.
What’s next for WIF?
CoinMarketCap reports that WIF was trading at $3.26 at press time.
A daily chart of the meme coin’s Fibonacci retracement showed that if the bullish sentiment continues, the next price is $3.86.
This can only happen if there is a steady demand for WIF. The key momentum indicators for the token showed that there is a general balance between buyers, sellers, and the market.
WIF’s Relative Strength Index and Money Flow Index were at $55.06 and $50.51, respectively, at the time of writing.
The values shown here show that neither WIF buyers nor sellers clearly controlled the market at press time.
WIF’s Chaikin Money Flow was also in a downtrend at the time of writing. This indicator measures the flow of money in and out of an asset over a period of time.
CMF price fell during the same period that WIF saw an increase, creating a divergence in favor of the bears.
This negative divergence can be interpreted as an indication of a possible reversal in the price trend.
If this continues, WIF could lose momentum and a correction could occur as the rally is no longer supported by real demand.
If this happens, the price of WIF could fall below $3 and change hands for $2.8.
Source: TradingView, WIF/USDT
Is your portfolio in the black? WIF Profit Calculator
Although WIF has posted gains in recent weeks, the pessimistic market sentiment remains.
Santiment reports that despite the double-digit price increase last week, WIF’s weighted sentiment remained negative at -0.46 at press time.
Source: Santiment
