- WIF pumped 12% on the 29th of January, after the Fed rate decision.
- Depending on U.S. inflation data, the memecoin could extend its recovery to $2 or slip below $1.
The Fed rate decision fueled dogwifhat [WIF] resurgence with a 16% pump.
Fed chair Jerome Powell reiterated that the agency was open to cutting interest rates even if inflation didn’t come down to the 2% target.
Following the update, Bitcoin climbed to $105K, lifting several altcoins and memecoins, including WIF. But, is it enough to fuel WIF to $2?
Can WIF top $2 again?
Source: WIF/USDT, TradingView
On the daily price chart, the OBV spiked, indicating substantial trading volume. WIF saw a massive $326M in daily trading volume on the 29th of February, much higher than the bid volumes seen in March 2024.
Unfortunately, the OBV hadn’t made a higher high to signal further traction as of this writing. Additionally, the daily RSI recovered partly from the oversold territory but was still below neutral to reinforce sustainable buying pressure.
While this bearish technical chart reading could change after the U.S. inflation data is revealed, the current reading didn’t paint a strong WIF jump to $2 (overhead resistance zone, red).
However, weak U.S. inflation data (PCE index) could accelerate WIF’s rally to $2 or above.
Spot demand increases
Source: Coinalyze
According to Coinalyze data, this rally saw strong demand from the Spot and Futures markets. This was shown by an uptick in Open Interest (OI) rates and Cumulative Volume Delta (CVD).
For example, OI jumped over 40% during the rally, showing massive leveraged trading partly fueled the surge. However, the OI later declined, but the CVD spot climbed higher.
Read dogwifhat’s [WIF] Price Prediction 2025–2026
This suggested that demand from the Spot market remained steady despite waning Futures Interest, which could be positive for WIF if the trend continues.
In short, WIF can potentially extend the recovery to $2 if upcoming U.S. inflation data favors risk assets. However, a bearish sentiment could drag the memecoin below $1 again.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
