Dogwifhat (WIF) Leads Meme Coin Rally Amid Negative Sentiment

Dogwifhat (WIF) emerged as the top meme coin in the last 24 hours following its 12.34% price increase. The increase means that the token, which had endured a long downturn period, has now jumped by 40.17% within the seven days.

However, the colossal jump is not in tune with the perception market participants are showing to WIF. Could this imply a profound change in direction?

The Meme Coin Fever Is Not At Its Peak

According to Santiment, WIF’s Weighted Sentiment languishes at -0.95. Weighted Sentiment considers the number of mentions of an asset while tracking those expressed in a positive or negative manner.

If the reading is negative, it means that there are more pessimistic comments online. On the other hand, a positive reading implies that the broader market is optimistic about the price potential. For WIF, it is the former. 

However, the bearish sentiment combined with the price increase means that the meme coin is nowhere near its top. 

Read More: 5 Best Dogwifhat (WIF) Wallets to Consider In 2024

Assuming sentiment is extremely positive with the price jump, WIF may be nearing a significant correction period. But as it stands, the upswing can continue.

Undeterred by the broader sentiment, traders are positioning for a further hike. The Funding Rate, which represents the difference between a cryptocurrency’s perpetual and spot prices, reveals this.

As of this writing, Dogwifhat’s Funding Rate stands at 0.005%. Funding Rate helps to maintain market equilibrium. This is to ensure that contracts in the market don’t expire. If it is positive, longs (buyers) pay shorts (sellers). 

But when it is negative, shorts pay longs a fee to keep their positions open. On June 28, the ratio was negative, indicating that the average trader’s expectation was bearish. Therefore, the positive reading as of this writing means that there is a rising demand for long positions.

WIF Price Prediction: Can Holders Get More Gains?

On the daily chart, BeInCrypto observed that the sellers’ exhaustion on June 23 was crucial to WIF’s bounce. During that period, the price traded at $1.56. Later on, bulls spotted the fatigue, helping the memecoin to form an almost-perfect daily green candle.

Currently, the $1.56 region is the support. Furthermore, WIF is looking to break through the $2.30 resistance. If successful, the price of the token may key into $2.64. Once this happens, a rally toward $3.21 will be possible.

Meanwhile, the Relative Strength Index (RSI) is 51.45, meaning the meme coin’s momentum maintains its bullish position. Likewise, the Moving Average Convergence Divergence (MACD) heads in a similar direction.

Using the difference between the 12 and 26 EMAs, the MACD shows if a trend is bullish or bearish. Since the reading is positive, it means that WIF’s trend is bullish. If sustained, this may confirm the continuation of WIF’s upward run.

However, WIF might not hit the aforementioned prices if Bitcoin (BTC) does not maintain its recent uptrend. This is largely due to the meme coin’s strong correlation with BTC. Should this happen, WIF’s price may drop to $1.96.