Memecoins
dogwifhat: To hold or not to hold this memecoin today?
- The value of WIF increased by more than 10% last week.
- However, according to the readings of some key technical indicators, it could be a decline.
The dog-themed token dogwifhat [WIF] could lose its double-digit price gains as its chart readings show that the bearish momentum remains significant.
Trading at $2.98 at press time, WIF’s price is up 12% in the past week, according to CoinMarketCap data.
Will WIF lose its bark?
The memecoin price rise reflects the general market growth observed during this period. According to CoinGecko According to the data, the global cryptocurrency market capitalization increased by 4% last week due to increased trading activity.
However, certain technical indicators of WIF observed on a daily chart suggested the possibility of a drop in its price in the short term.
First, the token’s Squeeze Momentum indicator has only shown negative values since April 13. This indicator measures the momentum of WIF and tracks its consolidation phase for traders looking to trade in a sideways market.
When it displays downward-facing red bars, the asset in question is experiencing downward momentum.
Confirming the bearish momentum, WIF’s Awesome Oscillator returned a negative value marked by an upward-facing red bar at press time.
Red bars on an asset’s Awesome Oscillator are often interpreted as a bearish sign, suggesting increasing selling pressure.
Additionally, WIF’s MACD line (blue) remained below its signal line (orange) at press time. This suggests that the short-term moving average of the meme coin was lower than the long-term moving average. Traders interpret this to mean that an asset may experience sustained selling pressure.
Source: WIF/USDT on TradingView
The bulls hold on
While bearish sentiments persist in the WIF market, the bulls continue to exert influence.
At press time, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) appeared poised to break above their respective centerlines, suggesting rising demand for the altcoin.
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WIF’s RSI was 49.53, while its MFI was 46.93. Likewise, its Chaikin Money Flow (CMF), which measures the flow of money into and out of the market, was 0.10 at the time of writing.
This value suggests that the meme coin benefits from a constant supply of liquidity, necessary to support its price growth.
Source: WIF/USDT on TradingView