The price of Dogwifhat (WIF) is nearing a possible breakout, with current trends indicating it may exceed the $3 threshold. Today, WIF has surged by 13%, marking it as one of the top-performing cryptocurrencies in the past 24 hours.
Traders are keenly observing its movements, as indicators suggest a persistent upward trend. This analysis delves into the technical formations backing this optimistic forecast and the critical levels to monitor.
Dogwifhat Volume is Increasing Alongside its Price
Currently, WIF is priced at $2.68. In addition to its price hike, the meme coin has experienced a significant rise in trading volume. As reported by Santiment, Dogwifhat’s trading volume has soared to $719.31 million in the last 24 hours, signaling an uptick in interest for the token as it stages a two-week recovery.
Normally, a rising price coupled with declining volume is interpreted as a bearish signal, indicating weak liquidity supporting the trend. However, WIF’s price increase, along with its growing volume, reinforces its current upward momentum. For the rally to sustain, trading volume must continue to grow. If this trend persists, WIF could reach $3 or even higher.
Read more: 5 Top Dogwifhat (WIF) Wallets to Consider in 2024
Moreover, the Weighted Sentiment for WIF, which was previously negative, has now shifted to a positive stance. Weighted Sentiment reflects the balance of positive versus negative mentions of a cryptocurrency online.
An increase in this metric suggests more favorable discussions on social media than unfavorable ones. In contrast, a negative sentiment indicates the opposite. With WIF’s Weighted Sentiment currently in the positive zone, this could signal heightened demand for the token and potentially drive its price higher.
WIF Price Forecast: $3 and Beyond
Analyzing the daily charts, WIF’s price is trading significantly above the Ichimoku Cloud. The Ichimoku Cloud is a set of indicators that identify support, resistance, and trends. The cloud itself is the most crucial aspect of all the indicators.
Usually, when the price is beneath the cloud, the trend is bearish. However, at this moment, the cloud rests below WIF’s price, indicating a bullish trend for the meme coin. If this condition persists, the value of the meme coin could overcome the $2.82 resistance, potentially ascending to $3.22 in the near term.
Read more: How to Purchase Dogwifhat (WIF) and Everything Else You Need to Know
However, should WIF fail to break through the resistant ceiling, its price could retreat to $2.30.
Disclaimer
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