- WIF maintained a bullish market structure on the 4-hour chart.
- A minor dip could be followed by a sustained rally.
Popular meme coin dogwifhat [WIF] has climbed to become the fifth-largest meme coin by market capitalization. It stood at $2.2 billion at press time.
AMBCrypto reported that the token’s trading pairs on Jupiter were among the most popular.
In turn, this could spark greater interest in Solana [SOL] and its blockchain. As for WIF, the uptrend continued after a pullback to $1.63.
The volume divergence could stall the WIF bulls
Source: WIF/USDT on TradingView
The Directional Movement Index (DMI) had both the +DI and ADX above 20 to signal a strong bullish trend in the 4-hour timeframe. The market structure was also bullish.
Additionally, WIF managed to climb above the $2.276 swing high it set earlier this month.
While the price slowly made higher highs, the OBV has trended downward. This showed that buying volume was dwindling even as prices climbed.
This divergence suggested that WIF could pull back to the Fibonacci retracement levels plotted in the chart above.
The $1.63 level was tested as support on the 7th of March. However, due to OBV divergence, another dip toward the $1.63, $1.48, or the $1.27 levels was possible.
The lower timeframe showed that the $2 area has served as a demand zone. A move below it would increase the chances of a continued slump.
Sentiment has remained positive behind WIF
Source: Coinalyze
The Open Interest has made higher lows and trended higher over the past week. However, it has slowed down its growth in the past 48 hours as the bullish momentum stalled near the $2.4 level.
Realistic or not, here’s WIF’s market cap in BTC’s terms
The spot CVD climbed higher and saw a minor dip on the 10th of March. Overall, the lower timeframes indicated that the buyers still had the upper hand.
The $2 support level could prove critical in the coming days.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
