- WIF jumped 50.77% in a week.
- dogwifhat has broken out of a one-month descending channel, signaling the possibility of further gains.
dogwifhat [WIF] broke out of a multi-month descending triangle after posting gains for three straight days. Over the past 24 hours, WIF rallied from $0.508 to a monthly high of $0.612.
At press time, the memecoin was trading at $0.6057—marking a 17.74% daily surge. WIF was up 50.77% weekly, with an 8.7% extension to its monthly gains.
The recent price pump shows a newfound interest and demand for WIF amidst a growing memecoin frenzy. With massive gains, the question is whether dogwifhat can sustain them to higher levels.
Can dogwifhat sustain recent gains?
According to AMBCrypto’s analysis, dogwifhat experienced strong upward momentum at press time as buyers dominated the market. Notably, the memecoin’s RSI surged to 70 from 41 within four days.
The uptick in RSI to such extreme levels reflects massive buying pressure with buyers in total control of the market.
Having said that, while 70 signals overbought territory, RSI often climbs to 80 before markets turn overheated enough for a correction.
Source: TradingView
Amidst this buying activity, the upward momentum has strengthened with the Directional Movement Index (DMI) surging to hit a 6-month high of 37.
With +Di rising while -DI remains low, it signals a strong upward momentum, confirming potential for the current trend to continue.
Source: CoinGlass
Accumulation surges across exchanges
Looking further, on short timeframes, specifically on hourly charts, dogwifhat experienced massive accumulation. In fact, the Netflow Heatmap remained negative across all major exchanges under the said timeframe.
For instance, on Binance, Netflow has dropped to -451.9k, signaling rising buying pressure with more outflows than inflows.
Source: Santiment
These buyers entering the market are mostly taking strategic positions, with most of them going long.
In fact, dogwifhat is seeing a positive Funding Rate Aggregated by Exchanges. This metric has turned positive again after dropping to negative territory the previous day.
A positive Funding Rate points towards a higher demand for long positions, suggesting that investors are bullish and expect more gains.
Simply put, dogwifhat’s momentum remained firmly in the bulls’ favor.
If buyers continue to dominate, WIF could climb toward $0.79. However, if demand fades as quickly as it appeared, a pullback toward $0.54 remains on the cards.