dogwifhat [WIF] crosses $3.97 mark: Is $5 closer than ever?

• WIF’s price increased by 40% in the last week.
• It has broken above the upper line of its horizontal channel.

The price of meme coin Dogwifhat [WIF] has broken above the upper line of the horizontal channel which it has trended within since the 12th of April, signaling an uptick in buying pressure. 

A horizontal channel is formed when the price of an asset consolidates within a range for an extended period.

This happens when there is a relative balance between buying and selling pressures, preventing the price from trending strongly in either direction.

The upper line of this channel forms resistance, while the lower line forms support. At $3.97 at press time, WIF closed above the upper line of the channel on the 27th of May.

This signaled a significant shift in market sentiment from negative to positive as buying activity gains momentum. 

Source: WIF/USDT on TradingView

WIF bulls are in charge

Confirming the shift in market sentiment, for the first time since the 23rd of May, WIF’s Weighted Sentiment crossed above the zero line, according to Santiment.

As of this writing, the value of the meme coin’s Weighted Sentiment was 1.279.

Source: Santiment

This metric’s value suggests that most WIF mentions across social media platforms express positive sentiment about the asset.

Confirming the bullish trend, WIF’s Elder-Ray Index returned a positive value of 0.93 at the time of writing. This indicator measured the relationship between the strength of buyers and sellers in the market.

When its value is positive, bear power is dominant in the market. Likewise, the dots that make up the meme coin’s Parabolic SAR indicator were pegged under its price. 

This indicator identifies the meme coin’s potential trend direction and reversals. When its dotted lines are placed under WIF’s price, it is a bullish signal.

It suggests that the asset’s price is rising and is likely to continue the uptrend. Market participants often interpret it as a sign to exit short and take long positions. 

Read dogwifhat’s [WIF] Price Prediction 2024-25

Further, the token’s key momentum indicator was in an uptrend at press time. WIF’s Relative Strength Index (RSI) was 65.46. 

Source: WIF/USDT on TradingView

This suggested that market participants’ demand for WIF outweighed its distribution.