WIF Faces Resistance and Support Challenges

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Dogwifhat (WIF), Pepe (PEPE), or Bonk (BONK) have witnessed recent movements in the meme token space. WIF, in particular, has been facing challenges within a downtrend on the lower timeframe.

Resistance and Support Levels in WIF

Buying pressure in the cryptocurrency market remains weak, and analysts have tempered expectations for WIF's recovery. This warrants patience from investors. Should investors consider buying the upcoming dip, or will their fortunes change anytime soon? WIF has been trading within a range for the past six weeks, spanning from $2.25 to $3.58. The mid-range level of $2.91 has acted as both resistance and support during this range-bound price movement.

Fibonacci retracement levels have highlighted the $2.57 level as a critical support area. However, this level was breached within the last six months, indicating the persistence of the longer timeframe downtrend. The failure of bulls to defend the mid-level support earlier this month may suggest an advantage for bears. The relative strength index (RSI) was below the neutral 50 mark at the time of writing, serving as an early sign of downward momentum.

Current Data on WIF

The Chaikin Money Flow (CMF) was at -0.16, indicating significant selling pressure. To overcome the bearish outlook, bulls need to push prices above the highest levels of the range and reclaim the area as support. Between May 13-19, prices were trending downward. On specific days like the 17th, the funding rate was +0.01% while open interest rose, but prices fell.

This indicated that some short-sellers entered the market, but since the funding rate was not negative, it wasn't too challenging. This reflected the bearish trend. Spot CVD was also declining. Most of this has changed in the last two days. Spot CVD in the altcoin has recovered, reflecting increased demand, and the funding rate has risen. Open interest attempted to climb higher but failed. This shows that speculative activities are still on the sidelines. However, the other two indicators might show early signs of a bullish trend.

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