- WIF remains bullish despite a potential short-term price drop and market correction.
- Key support at $1.885, with a bounce expected if it holds, or a deeper drop.
- Accumulation continues, with positive indicators like Chaikin Money Flow suggesting a future price increase.
Dogwifhat (WIF) has struggled recently, dropping 43.11% over the last month. However, signs suggest the market could shift soon. While further declines are possible in the short term, WIF still has a bullish outlook. Despite the downturn, the token may soon regain strength. Here’s why WIF might bounce back after a brief correction.
Short-Term Dip Could Lead to a Rebound
WIF’s chart shows a bullish structure, which could push the price up. The token recently reached the support level at $1.885, a key point. Normally, this would trigger a bounce, but buying pressure is still missing. If support at $1.885 breaks, the price could fall to $1.486.
This level might offer a chance for a stronger reversal. Once a bounce begins, WIF will face resistance at $2.895 and again at the top of the bullish pattern. If these levels break, the price could climb to $4.830. But first, WIF may need to dip slightly before it rallies.
Bearish Signals Suggest a Possible Drop
The market sentiment for WIF is becoming more bearish. Open Interest (OI) has dropped 11.25%, reaching $360.94 million. This indicates that traders are closing positions as the price falls. Market cap has dropped 14.29%, and trading volume fell 44.16%.
The shift in sentiment is clear, with more short positions than long ones, as seen in the 0.89 long-to-short ratio. The Average Directional Index (ADX) also signals a strong bearish trend at 30.19. As the ADX rises, the downtrend may continue. These bearish signs suggest WIF could dip below current support levels.
Despite these signs, the Chaikin Money Flow (CMF) shows positive accumulation at the support level. Although a small dip is possible, the long-term outlook remains bullish. Once the correction phase ends, WIF could experience a strong rally.
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