dogwifhat: To hold or not to hold this memecoin today?

• WIF’s value has grown by over 10% in the last week.
• However, according to readings from some key technical indicators, it may be due for a decline.

The dog-themed token dogwifhat [WIF] may shed its double-digit price gains, as readings from its chart show that bearish momentum remains significant.

Exchanging hands at $2.98 at press time, WIF’s price has risen by 12% in the last week, according to CoinMarketCap’s data. 

WIF to lose its bark?

The memecoin’s price rally mirrors the general market growth that has been observed during that period. According to CoinGecko’s data, the global cryptocurrency market capitalization has risen by 4% in the last week due to the surge in trading activity. 

However, some of WIF’s technical indicators observed on a 1-day chart hinted at the possibility of a decline in its price in the short term. 

First, the token’s Squeeze Momentum Indicator has posted only negative values since 13th April. This indicator measures WIF’s momentum and tracks its consolidation phase for traders looking to trade in a sideways market.

When it shows downward-facing red bars, the asset in question is experiencing a downward momentum. 

Confirming the bearish momentum, WIF’s Awesome Oscillator returned a negative value marked by a red upward-facing bar at press time.

Red bars on an asset’s Awesome Oscillator are often interpreted as a bearish sign, suggesting a hike in selling pressure.

Further, WIF’s MACD line (blue) remained below its signal line (orange) at press time. This suggested that the meme coin’s short-term moving average was lower than the long-term moving average. Traders interpret this to mean an asset may witness sustained selling pressure. 

The bulls hold their own

While bearish sentiments linger in the WIF market, the bulls continue to wield an influence. 

At press time, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) appeared poised to cross above their respective center lines, suggesting a spike in demand for the altcoin.

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WIF’s RSI was 49.53, while its MFI was 46.93. Likewise, its Chaikin Money Flow (CMF), which measures the flow of money into and out of the market, was 0.10 as of this writing.

This value suggested that the meme coin saw a steady supply of liquidity necessary to sustain its price growth.