WIF Crypto Price Prediction: Will Memecoin Reach $10 Amid Recent Drop?

  • A breach of the $3.25 resistance level could send WIF to $6.50.
  • The stable money supply showed that market participants had the purchasing power to push the price higher.

Solana-Based Memecoin Dogwift [WIF] Its value has decreased by 16.36% in the last 30 days.

This performance was in contrast to the price action which saw WIF rise an astonishing 1,650% on a year-to-date (YTD) basis.

Not many cryptocurrencies can claim this performance this year. But with a solid community, WIF has been able to outperform almost every other popular memecoin this cycle.

At the time of writing, WIF was priced at $3.02. But before this recent decline, the token had come close to reaching $5. However, this attempt was rejected at $4.84 which is the all-time high.

the bulls have the upper hand

Despite the decline, many market participants are confident that the token will reach new highs soon. For some, the crypto could reach $10. For others, a 5x increase to $15 remains a plausible price forecast.

If WIF reaches $10, it means the project's market capitalization could exceed $10 billion. However, it is important to consider the possibility before drawing conclusions.

The first indicator considered by AMBCrypto was its funding rate. If funding is positive, it means that the per share price of an asset is trading at a premium compared to the index price.

In this case, most bets lean bullish. On the other hand, negative funding means that the actual price of a cryptocurrency is at a discount to the spot value.

It also indicates widespread bearish sentiment in the derivatives market.

At press time, WIF's funding rate was 0.008% – which is lower than seven days ago. But one thing we noticed was that the price of WIF is moving higher in the last hour.

WIF showed bullish trend towards price

Source: Sentiment

A reasonable estimate for this movement is that a portion of the spot volume were buy orders. In such a situation, the price of WIF may rise.

WIF needs to break $3.25

Validation of this bullish prediction could send WIF initially towards $3.65. In terms of long-term goals, AMBCrypto analyzed the token from a technical perspective.

On the 4-hour chart, Supertrend showed a buy signal (green) at $3. However, there was a sell wall (red) at $3.25. Previously, WIF has attempted to overcome this resistance,

However, the bears rejected the move, sending the price back down to $2.76. However, the Money Flow Index (MFI) showed that the WIF may not fall that low.

This was because the MFI reading was near 60.00, indicating that a good amount of liquidity has flowed towards WIF in the crypto market.

If this reading continues to rise, bulls may successfully break the $3.25 resistance. However, the Relative Strength Index (RSI) was below the midpoint.

But the readings showed that it could rise above 50.00 to validate the bullish momentum. Should that happen, WIF could be a move that would take it towards $6.50.

However, extremely bullish conditions could push the price of WIF to $10 in the long term.

WIF Price Analysis Shows Potential Forecast Up to $10

Source: TradingView

For some, this could happen before the end of 2024. However, others believe that Memecoin price may not reach double digits this year.

Open interest falls but it's not the end

Additionally, WIF's open interest (OI) stood at $251.38 million at press time. OI increases or decreases depending on net positioning. If the indicator increases, it means an increase in liquidity allocated to contracts.

In such a situation, buyers are aggressive. Conversely, sellers become aggressive as OI decreases. According to Sentiment data, WIF's OI was almost two times lower than its March value.

If traders decide to open more positions, the price of WIF may improve. However, it will take a lot of capital to take the token to its previous high.

But AMBCrypto observed that this would not be difficult to achieve. The reason for this was the stablecoin supply, which was held by WIF whales and was worth more than $5 million.

WIF price signals consolidation before breakout

Source: Sentiment

At the time of writing, this metric had begun to rise, indicating that WIF's large investors were sufficiently armed to push the price higher.

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Should stablecoins be deployed to purchase tokens, a significant price increase could occur.

However, it may be impossible for WIF to repeat its 883% 90-day surge. Still, a rise to $10 is a possibility for the token. AMBCrypto cannot guarantee if (when) this will happen.

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