Dogwifhat (WIF) formed a golden crossover when its 50-day Simple Moving Average (SMA) moved above the 200-day SMA on November 1. This crossover is a bullish indicator that signals potential upward momentum, causing WIF's price to increase by 37%, reaching $3, a five-month high.
The sustainability of WIF's rally hinges on maintaining support above the $3 level. The golden crossover often prompts traders to take long positions, anticipating further price increases.
WIF has seen a 48% surge in the past seven days, with indicators like the Relative Strength Index (RSI) rising, indicating growing demand. The RSI reading of 66.99 shows buying momentum remains strong and has not yet crossed into overbought territory.
Open interest for WIF also climbed to a monthly high of $448 million, supporting the rally. Increased open interest indicates new money entering the market and supports the current price increase, suggesting potential sustained momentum.
Currently trading at $3.00, WIF's price might stabilize if buying pressure continues, potentially paving the way for more gains. Resistance levels at $3.41 and $3.96 could serve as hurdles before reaching the yearly high of $4.86.
However, the optimistic outlook could change if bearish sentiment emerges, potentially bringing the price down to $2.51.
