- WIF has been trading within a symmetrical triangle pattern – A technical setup that suggests a growing push from market participants
- Analysis of key metrics indicated that market participants are actively positioning for WIF to shift into bullish territory
Over the past week, dogwifhat [WIF] has faced volatility, recording a 6.65% decline to its press time price of $2.44. This level was previously exceeded during an October rally before strong resistance triggered a pullback.
Now, WIF is making another attempt to break higher, with a chance of breaching the resistance that previously capped its upside. Should it succeed, WIF could be primed for a major move towards the $4.80 mark.
Key pattern signals potential rally
WIF has been trading within a symmetrical triangle, a technical pattern that is often considered a major catalyst for upward rallies. This pattern forms when converging support and resistance lines create a narrowing price range.
If this pattern materializes with strong momentum, WIF could break through the resistance level at $2.918 – A level that has repeatedly capped price movement on previous attempts.
Should the rally ignite, WIF could potentially double, aiming for a long-term target of $4.860, with an intermediate target of $4.080.
Source: Trading View
To assess market sentiment and its alignment with this bullish formation, AMBCrypto analyzed on-chain metrics, finding additional bullish signals that reinforced this outlook.
Bullish pattern supported by rising trader activity
According to Coinglass, Open Interest (OI), a metric which measures the number of unsettled derivatives contracts, specifically in the Futures market, underlined a hike in buying activity.
At press time, the OI had risen by 3.95%, reaching $396.52 million, with its chart showing an uptrend. This hike aligned with WIF’s volume uptick of 40.8%, pushing the total trading volume to $857.60 million.
In addition to the OI hike, the funding rate also increased, with a press time value of 0.0065%. This suggested that long traders have been actively funding positions to support price stability, indicating bullish sentiment around WIF.
Source: Coinglass
If both indicators continue trending positively, a WIF rally will be increasingly probable.
Hike in liquidity flow
Finally, on-chain activity alluded to a growing buying trend as traders continued to open long positions, with significant liquidity flowing into WIF purchases.
The Chaikin Money Flow (CMF) indicator also highlighted a significant uptick, moving from negative territory to a neutral reading of 0.00.
Source: Trading View
This swift shift from negative to neutral implied strong liquidity acceptance in the market – A sign of sustained bullish momentum.
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