WIF has increased by 42.9% in the past day, reaching $1.27.
The RSI of dogwifhat has reached the overbought zone, signaling potential high volatility.
From a low of $0.53 a week ago, dogwifhat [WIF] has experienced a strong price increase. During this time, the memecoin has escaped a 5-month downtrend. In the past seven days, WIF has risen by 127.24%.
Currently, WIF is trading at $1.27, up 42.9% on the daily chart, reaching a four-month high.
This price increase raises questions about the actual factors driving the price up.
What is driving the uptrend of dogwifhat?
The recent price surge indicates growing demand and interest in the memecoin, attracting strong participation in its network.
Derivative market activity is surging, signaling strong investor participation. On Binance, trading volume has increased to $174.3 million in the past day.
Meanwhile, the open interest of dogwifhat increased by 24%, reaching a three-month high of $355 million.
Source: Santiment
Considering the Composite Funding Rate of Dogwifhat across exchanges, this indicates that investors are primarily holding long positions.
The funding rate across all exchanges has remained positive over the past week. Typically, a positive funding rate reflects strong demand for long positions as investors expect prices to continue rising.
Source: Coinalyze
The surge in demand is clearly evident, with buying pressure surpassing selling activity.
According to data from Coinalyze, in the past 24 hours, buyers of dogwifhat have purchased 54.53 million WIF, while sellers sold 47 million, resulting in a positive difference of 6 million.
This indicates that buyers are outpacing sellers, a trend that often drives prices higher.
What’s next for WIF?
According to analysis from TinTucBitcoin, WIF is experiencing a strong uptrend. This uptrend has led to significant buying as investors enter the market to accumulate dogwifhat.
As buying pressure increases, the RSI of the memecoin has risen to the overbought zone. Currently, the RSI of dogwifhat is 84.21, reflecting strong buying pressure with buyers dominating the market.
However, when the RSI reaches such extreme levels, the market may need to correct as buyers become exhausted and sellers return to the market.
Source: Tradingview
In the previous cycle, when the RSI of Dogwifhat entered the overbought zone, the price experienced significant volatility.
For instance, in November 2024, the RSI of WIF reached 79, causing the price to rise to $4.9 on the same day. However, after reaching this level, WIF retraced to $2.9, starting a 5-month downtrend.
If history repeats itself, the current RSI increase of Dogwifhat could signal a potential price decline.
Source: Santiment
Despite the RSI reaching high levels, market sentiment remains optimistic, with the strongest sentiment weight since January 2024.
A correction seems unlikely as volume, buyers, and the uptrend remain strong.
If this condition continues, dogwifhat could regain the resistance level of $1.53. However, if the RSI enters the overbought zone and triggers a market correction like before, WIF could drop below $1, finding support around $0.88.
Source: https://tintucbitcoin.com/dogwifhat-wif-tang-127-co-hoi-hay-rui-ro/
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