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The crypto market is witnessing fluctuating trends as Dogwifhat (WIF) faces long liquidations while still maintaining a strong market presence.
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Despite recent volatility, WIF has achieved remarkable monthly gains of 54%, reflecting a shift in trader sentiment toward this memecoin.
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According to a report by Lookonchain, notable trading activity is observed with one trader moving 1.5 million WIF tokens to Coinbase, yet maintaining a hold on their investment.
This article examines recent trends in Dogwifhat (WIF), including liquidation pressures and funding rates, amidst a dynamic market landscape.
Recent Price Movements of Dogwifhat (WIF): An Overview
As of the latest trading data, Dogwifhat (WIF) is valued at $3.22, showcasing a 5% increase over the past 24 hours. This has contributed to its impressive run, providing noticeable monthly gains.
However, the current market shows a tension between selling and buying pressures, revealed through the Chaikin Money Flow (CMF), which has turned negative, indicating that selling activity outpaces buying. Meanwhile, the Awesome Oscillator (AO) displays a bullish divergence, suggesting that there may still be momentum in the uptrend despite the current bearish signals.
Navigating the Technical Indicators
The descending triangle pattern forming on WIF’s one-day chart raises concerns about potential downturns, with a pivotal support level situated at $3. This threshold must hold to avert further bearish trends. Furthermore, for WIF to maintain its upward trajectory, it must breach the resistance at $4.83, which would invalidate prevailing bearish sentiments.
Source: TradingView
Analyzing the Surge in Long Liquidations
The recent data from Coinglass reveals a significant surge in long liquidations affecting WIF’s price movement. In the last 48 hours alone, over $5 million in long positions were liquidated, which has amplified the selling pressure and contributed to recent price stagnation.
This forced liquidations lead to a compulsive selling environment, often counteracting any bullish sentiment that WIF may still possess. The liquidation heatmap indicates a series of triggered liquidations coinciding with several unsuccessful attempts to sustain the price rally.
Source: Coinglass
Record Highs in Funding Rates
In a paradoxical circumstance, while long liquidations are proliferating, WIF’s funding rates have reached an unprecedented high of 0.0555%. This implies that traders are willing to incur additional costs to maintain their long positions, reflecting an overriding bullish sentiment, despite the liquidation pressures.
It is essential for traders to remain vigilant; any sudden price drops might trigger a long squeeze, potentially exacerbating the current liquidation cycle and driving prices lower.
Source: Coinglass
Conclusion
In conclusion, while Dogwifhat is experiencing a complex intertwining of long liquidations and record-high funding rates, traders must approach this memecoin’s landscape with caution. The critical support at $3 serves as a fundamental watchpoint, and any significant movement above $4.83 may signal a renewed bullish phase. Careful monitoring of market trends and indicators will be crucial as WIF navigates this challenging terrain.
