- WIF is currently trading at a critical level that will determine its next price movement.
- Top derivative traders across exchanges are beginning to buy the asset, with spot traders following suit.
dogwifhat [WIF] saw a massive price surge in the past 24 hours, reaching $0.628 after a 19% increase. While the rally remains intact, WIF has hit a major resistance level.
Current sentiment from top derivative traders and week-on-week buying activity in the market continues to rise.
Obstacle ahead for WIF
At the time of writing, WIF is facing a major barrier on the chart at the descending resistance (purple line), which coincides with a Fibonacci retracement level.
WIF has reacted negatively to this level, experiencing a minor price pullback. However, analysis suggests that the asset could break through the resistance and rally 34% to a new high of $0.897.
Source: TradingView
There’s also a possibility that WIF declines from its current level and trades into two key support zones—$0.634 or lower, around $0.609—before bouncing back to breach the resistance level and reach the rally’s peak target.
AMBCrypto found that a wave of buyers in the derivative and spot markets could push WIF past this resistance level.
A wave of buyers could push the price higher
Currently, the top traders by account size on Binance and OKX are making long bets on WIF, with buying volume surging significantly, as shown by the Taker Buy-Sell Ratio.
This ratio measures which side of the market has the most trading volume. A reading above 1 indicates that buying volume outweighs selling volume, while a reading below 1 suggests the opposite.
Top traders on Binance and OKX have readings of 3.54 and 1.81, respectively.
When buying volume is significantly above 1, it signals strong conviction in WIF’s upward movement, which has historically been positive for price action.
Source: Coinglass
Open Interest and Funding Rate have both risen simultaneously as these top traders enter the market. Open Interest surged 5.83% to $203 million, while the Funding Rate was 0.0054% at press time.
A rise in both metrics indicates that several WIF contracts have been opened, dominated by buyers betting on the asset’s price climbing higher. These traders are paying a premium to maintain their positions.
Continued weekly buying activity
Spot traders are exhibiting similar buying behavior, as the week-over-week exchange netflow remains negative.
This week, a total of $9.05 million worth of WIF has been purchased and moved to private wallets, likely for long-term holding.
Throughout February, a total of $64.49 million worth of WIF has been bought and withdrawn from exchanges.
Source: Coinglass
Movements like these reduce WIF’s exchange supply, which is expected to have a positive impact on price, as limited access to the asset could drive its value higher.
