- Global traders are buying dogwifhat despite falling prices.
- Positive overall forecasted financing rates indicate that WIF buyers are willing to pay sellers.
dogwifhat (WIF) gained ground during its first cycle and is now at the forefront of the expected “memecoin supercycle”. This supercycle, which is expected to last until 2025, is generating enthusiasm.
However, even though WIF has seen a strong rise recently, there are signs of a potential correction in the near term. The Global Accounts Long% and the WIF price move inversely, with a correlation of -0.92.
This could suggest that WIF was temporarily overvalued.
This gap between traders’ expectations and actual price movements suggests excessive optimism in the market. Traders can be very long, expecting the price of WIF to rise, but the reality shows the price falling.
Source: Hyblock Capital
This divergence generally suggests a need for correction or a continued downtrend before WIF resumes its upward trajectory.
WIF price action in correction phase
To assess how far WIF could fall before rebounding, a closer look at price action is essential, especially for traders considering a strategic entry point.
WIF was trading at $2.50 at press time, but the formation of a head and shoulders pattern over a 15-minute time frame indicated that WIF could fall further before rebounding.
Based on this trend, WIF is expected to approach the $2 level soon.
Additionally, the Stochastic RSI, below the neutral zone at press time, further supported the likelihood of a brief correction before a potential rebound.
Source: TradingView
Despite this decline, buyers have shown resilience, stepping in after each decline, suggesting growing interest in WIF and confidence that a rebound is imminent.
Sellers avoid
AMBCrypto’s review of WIF’s open interest (OI), aggregate funding rates, and cumulative volume delta (CVD) confirmed that sellers were not exerting significant pressure.
There are no considerable passive spot bids, implying that Open Interest favored WIF. Positive aggregate funding rates showed buyers paying sellers, reinforcing bullish sentiment.
The rise in CVDs in spot trading added to this confluence, suggesting that dogwifhat was poised for a rebound.
Source: Coinalyse
Additionally, falling CVDs for futures presented another divergence signal. An upward trend could therefore occur soon.
Read dogwifhat (WIF) (WIF) Price Forecast 2024-2025
Divergences usually provide traders with the opportunity to go long, consistent with the idea that dogwifhat could rebound from this correction.
As Bitcoin (BTC) hovers around $67,000, the bullish sentiment in the broader market could further fuel the WIF rally, which could push its price higher and closer to new highs.
