- WIF saw a notable market drop in the past 24 hours; however, a major rally could be near.
- Market indicators and metrics presented mixed sentiment, but a clear path to a rally exists.
The past 24 hours haven’t been favorable for many dogwifhat [WIF] market participants, as the asset experienced a 23.83% price decline, continuing a losing streak after dropping 64%.
While this bearish sentiment persists, AMBCrypto noted the possibility of a slight fall before a major price movement, potentially leading to significant gains for WIF.
WIF decline could lead to a price boom
Recent chart analysis shows WIF is trading within a descending channel formed by converging support and resistance levels, trending downward.
This structure is generally a bullish pattern, which begins when the price breaches the resistance line and trades back to the starting point of the descending channel.
If WIF mimics this pattern, it could experience a major rally. Analysis suggests this rally would likely be triggered by a support level just below, specifically at $0.4375.
From there, the price could gain momentum, breach the upper resistance line, and rally as high as 964% to reach $4.83.
Source: TradingView
Further analysis by AMBCrypto supports this potential fall-to-rally move, as indicated by market indicators.
Fall-to-rally movement confirmed
The positions of the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) suggested that WIF could follow the path outlined in the chart—a slight fall followed by a major rally.
The RSI confirmed this by crossing into the oversold region (below 30) with a current reading of 22.99.
Source: TradingView
When an asset enters the oversold zone, it often signals that while the market remains bearish, a major bounce back could occur soon. This appears to be the case for WIF, suggesting a potential rebound.
The CMF indicates continued bearish sentiment with a reading of -0.35. Since the CMF combines price and volume to gauge market sentiment, a negative reading suggests high selling pressure, implying a potential further price drop.
If the CMF begins to rise alongside the RSI, it could mean a price reversal, aligning with the chart structure.
Spot and derivative traders remain bearish
Both spot and derivative market traders remain bearish, as evidenced by positive exchange netflows and a negative Open Interest Weighted Funding Rate.
WIF’s exchange netflow shows that spot traders sold $2.17 million worth of the asset in the past 24 hours, continuing the previous day’s selling streak, when $2.26 million of WIF was sold.
A bearish sentiment was also observed among derivative traders, as the Open Interest Weighted Funding Rate turned negative at -0.0031%.
Read dogwifhat’s [WIF] Price Prediction 2025–2026
This metric, which combines the Funding Rate and Open Interest within a specific period, provides a more in-depth gauge of market sentiment.
In this case, the bearish sentiment suggests short contracts dominate the market. If both spot and derivative traders begin buying WIF, it could contribute to a market direction change.
