Dogwifhat (WIF), the meme coin that made waves in early 2024, has seen a rough week, dropping over 23% in the last seven days. However, recent signs suggest a potential rebound, with bulls attempting to wrest control from the bears.

Despite the positive signals, analysts warn the road to recovery won’t be smooth. BeInCrypto’s analysis delves into the current state of WIF, highlighting a potential tug-of-war between buyers and sellers.

Bulls Charge After Recent Slump

WIF experienced a significant decline between June 5th and 24th, with its price plummeting from $3.42 to $1.60, a decrease of nearly 40%. The token managed a brief rally, reaching $2.25 on July 1st, but selling pressure quickly pushed it back down to June lows.

However, a glimmer of hope appears on WIF’s daily chart. The Cumulative Volume Delta (CVD) indicator suggests a shift in buying activity. When the CVD displays a green bar, it signifies that buying pressure is outpacing selling pressure.

In WIF’s case, the recent green CVD bar indicates that buyers surpassed sellers by over $307,950. If this trend continues, WIF may find support above $1.70, potentially eyeing a higher price point.

Open Interest Hints at Renewed Market Attention

On-chain analysis, specifically Open Interest (OI), provides further insight into this potential price increase. According to Santiment, WIF’s OI currently sits at $166.70 million, although lower than July 6th’s figure. This still represents an improvement compared to July 7th.

Open Interest reflects the total amount of open contracts in the market. An increase suggests aggressive buyers entering the market and increasing their net positions. Conversely, a decrease implies that market participants are closing positions and withdrawing capital.

While the charts hint at a potential price increase for WIF, a significant rise in OI is crucial to validate this jump.

WIF Price Prediction: A 20% Rally on the Horizon?

Another technical indicator, the Moving Average Convergence Divergence (MACD), offers further clues about WIF’s momentum. The MACD uses the difference between two moving averages to gauge momentum and identify potential entry and exit points for traders.

A positive MACD reading suggests bullish momentum, while a negative reading indicates the opposite. Currently, the MACD for WIF sits above the signal line, suggesting bullish momentum. This might present an entry opportunity between $1.68 and $1.72, with potential gains as the price attempts to retest $2.11.

Crucial $2 Level: Can Bulls Break Through?

However, analysts caution that WIF faces a significant hurdle at the $2 mark. To solidify the bullish thesis, buyers need to maintain the current momentum and overcome any remaining bearish pressure.

If bulls succeed, WIF’s price might rise above $2. But if selling pressure resurfaces, the current positive sentiment will be invalidated, potentially pushing WIF back below $1.60.

The Takeaway

While Dogwifhat (WIF) shows early signs of recovery, the battle between bulls and bears is far from over. Sustained buying pressure and increasing Open Interest are crucial for a successful WIF rebound. Investors should closely monitor these factors and the $2 resistance level to determine the direction of WIF’s future price movement.

By Alex Wheeler

Alex is a lead writer at AltcoinsAnalysis, bringing the audience all leading developments in the blockchain industry and the latest trends in the cryptocurrency market.