Memecoins
WIF crypto price prediction: will memecoin hit $10 amid recent decline?
- A break above the $3.25 resistance could send WIF to $6.50.
- The supply of stablecoins showed that market participants had the purchasing power to drive prices higher.
Memecoin based on Solana dogwifhat [WIF] has lost 16.36% of its value over the last 30 days.
This performance contrasted with the price action which saw WIF produce an astonishing 1,650% increase on a year-over-year (YTD) basis.
Few cryptocurrencies can boast such performance this year. But with a strong community, WIF was able to outperform almost all other popular memecoins during this cycle.
At the time of writing, WIF’s price was $3.02. But before this recent drop, the token was close to hitting $5. However, the attempt was rejected at $4.84, which is its all-time high.
The bulls have the upper hand
Despite the autumn, many market participants are convinced that the token will soon reach a new high. For some, the crypto could reach $10. For others, a 5x increase to $15 remains plausible. price prediction.
If WIF reaches $10, this means the project’s market capitalization could exceed $10 billion. However, it is important to consider the possibility before concluding.
The first AMBCrypto indicator considered was its financing rate. If funding is positive, it means that the price per share of an asset is trading at a premium to the index value.
In this case, most bets lean towards the bullish side. On the other hand, negative funding means that the price per investment of a cryptocurrency is lower than its spot value.
This also indicates broader bearish sentiment in the derivatives market.
At press time, the WIF funding rate was 0.008%, lower than seven days ago. But one thing we have observed is that the price of WIF has increased over the last hour.
Source: Santiment
An appropriate inference for this move is that some of the spot volume consisted of buy orders. As such, WIF price could rebound.
WIF must break $3.25
Validation of this bullish forecast could send WIF towards $3.65 to start. In terms of long-term goals, AMBCrypto analyzed the token from a technical perspective.
On the 4-hour chart, Supertrend issued a buy signal (green) at $3. However, there was a sell wall (red) at $3.25. WIF has already tried to overcome this resistance,
However, the bears rejected this move, bringing the price back to the brink of a decline to $2.76. However, the Money Flow Index (MFI) showed that the WIF might not fall that low.
Indeed, the MFI figure was close to 60.00, indicating that a good amount of liquidity was flowing into the WIF side of the crypto market.
If this reading continues to rise, the bulls may succeed in breaking through resistance at $3.25. However, the relative strength index (RSI) was below the midpoint.
But the figure showed signs that it could rise above 50.00, to validate the bullish momentum. If that were the case, WIF could be a metric that puts it at $6.50.
However, a very bullish situation could push the price of WIF to $10 in the long term.
Source: TradingView
For some, this could happen before the end of 2024. However, others believe that the memecoin price may not reach double digits this year.
Open interest is dropping but it’s not the end
Additionally, WIF’s open interest (OI) stood at $251.38 million at press time. The OI increases or decreases based on net positioning. If the indicator increases, this implies an increase in liquidity allocated to contracts.
In this situation, buyers are aggressive. Conversely, sellers are aggressive when OI decreases. According to Santiment data, WIF’s OI was almost half the March value.
If traders decide to open more positions, the price of WIF could to recover. However, it would take a lot of capital to take the token to its previous high.
But AMBCrypto observed that this might not be difficult to achieve. This was due to the supply of stablecoins, held by WIF whales, and valued at over $5 million.
Source: Santiment
At the time of writing, this measure had started to increase, indicating that large WIF investors were sufficiently armed to drive up the price.
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If stablecoins were deployed to purchase the token, a significant price increase could occur.
However, it might be impossible for WIF to repeat its 883% 90-day increase. Nonetheless, an increase to $10 is a possibility for the token. If (when) this would happen is something that AMBCrypto cannot guarantee.