Dogwifhat (WIF) Rebounds After Brief Sub-$3 Scare — What Next 📈
Dogwifhat (WIF) faced a temporary dip below $3 due to a broader market decline but has since rebounded and is trading at $3.16. This prompts a technical analysis to assess potential future movements.
The resurgence in WIF's price can be attributed to increased buying pressure, evident from the elevated Chaikin Money Flow (CMF) indicator. CMF readings show the flow of money in and out of the asset, suggesting strong buying trends over selling pressure at present.
If this trend continues, WIF's price is likely to rise. Additionally, data from Santiment indicates a positive funding rate, suggesting a bullish market sentiment as traders expect further recovery, and are betting on WIF’s price increase.
Technically, WIF has formed an inverse head and shoulders pattern on the daily chart, typically signaling a market shift from bearish to bullish. This pattern indicates possible price ascension towards $4.07.
However, any drop in CMF readings below the midpoint could suggest a resurgence of selling pressure, risking a potential decline of WIF's price to $2.44.
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