- The growth in the derivatives market and recent whale activity have fueled WIF’s bullish move.
- Analysis of the chart suggested a move to $1 could be on the horizon; however, there are key levels to note.
There has been a massive surge in dogwifhat’s [WIF] trading activity, fueling its recent 21% rally in the past 24 hours. This rally is a continuation of its past week’s rally, where the asset has gained over 30%, at press time.
Currently, market participants align with the bullish sentiment seen on the chart. However, there is likely to be some pullback before the real market rally is established, which AMBCrypto’s analysis provides insights into.
Market momentum is building
The market momentum is gradually gaining strength. The Funding Rate helps determine the market trend, showing whether buyers or sellers are in control. Currently, buyers are actively driving market movement.
Press-time data from Coinglass shows the asset has a funding rate of 0.0031%. This means buyers are paying a premium to short traders to keep the market price disparity low
Source: Coinglass
Open Interest (OI) and volume have both surged accordingly, rising 21% to $252 million and 188% to $1.44 billion, respectively.
When both metrics experience a positive surge like this, it implies that OI—representing the number of unsettled derivative contracts—has been dominated by long contracts.
This movement in the derivatives market has significantly influenced WIF’s price action. However, some obstacles still lie ahead.
Obstacles before a move to $1
WIF is now facing one major price obstacle that will determine whether the asset rallies to $1 or declines in search of more momentum for another rally—or even takes a bearish turn.
This resistance level is precisely at $0.798, as indicated by the Fibonacci retracement line.
However, WIF has not yet tested this level. Instead, the last four candlesticks have maintained the same range, which could indicate possible accumulation at that level. Investors may be buying the asset at a lower price before a rally.
Source: TradingView
Once the market exits this accumulation phase, it is likely to see a major upswing past this resistance level. The next target is $0.981, with a final target of $1.04, which is known to house liquidity.
Whale places big bets
Whales are addresses that tend to control a notable supply of an asset. In the past 24 hours, Lookonchain reported that one whale spent $2.3 million to purchase 2.7 million WIF at an average price of $0.77.
Source: Solscan
Typically, when a large purchase is not immediately followed by a price rally, while the asset remains range-bound, it confirms ongoing accumulation among traders. This accumulation phase often results in a major price rally.
For now, sentiment favors WIF, positioning it for potential further market gains.
