Why WIF’s 19% hike might outshine SHIB, Dogecoin in the short term
  • WIF’s open interest fell along with the price.
  • Bearish sentiment remained predominant in SHIB and DOGE.

meme coins etc. dog hat [WIF], Shiba Inu [SHIB]and dogecoin [DOGE] Recently, it has become a hot topic due to its unstable price movements.

However, as market conditions turned bearish, these tokens lost a significant portion of their market capitalization.

WIF may turn bullish soon

One of the newest entrants to the meme coin ecosystem, WIF has entered the market by storm. It quickly climbed the ladder and surpassed PEPE in market capitalization.

Last week was also the biggest gain for investors as the value of the token soared 19%. However, in the past 24 hours, the tables have turned and the price has fallen by 9.6%.

As of this writing, WIF is trading at $3.67 and has a market cap of over $3.66 billion. However, as some indicators suggest, the situation could once again be in investors’ favor.

The decline in WIF’s funding rate means that derivatives investors are no longer buying WIF at low prices. Furthermore, open interest also decreased.

A decline in the indicator usually suggests a likely trend reversal.

WIF open interest decreases

Source: Santimart

I then checked the 4-hour chart of WIF to see what the indicators were suggesting. According to our analysis, the WIF Money Flow Index (MFI) registered a decline from the bearish neutral mark.

However, its Chaikin Money Flow (CMF) took a different route and rose, hinting at higher prices. For WIF to start a bull market, the price could cross the 20-day SMA.

Bollinger Bands also showed that WIF’s price is hovering just below its 20-day SMA at the time of this writing.

Source: TradingView

What are SHIB and DOGE doing?

WIF’s weekly chart was green, but it was different for SHIB and DOGE. Both meme coins have recorded double-digit declines over the past seven days.

according to coin market cap, In the past 24 hours, the value of Shiba Inu and Dogecoin have fallen by more than 3% and 5%, respectively. At the time of writing, SHIB was trading at $0.00002626 and DOGE was valued at $0.1745.

Their negative price action also affected social indicators. For example, the weighted sentiment for SHIB and DOGE both declined, indicating that bearish sentiment is dominant in the market.

However, while DOGE’s social volume declined, SHIB’s index rose, reflecting the latter’s popularity in the crypto space.

DOGE and SHIB weighted sentiment decreased

Source: Santiment

read Dogecoin’s [DOGE] price prediction 2024-25

SHIB’s daily chart reveals that unlike WIF, SHIB’s CMF continues to be flat. The Relative Strength Index (RSI) followed a similar trajectory, suggesting that investors could see slower days ahead.

Source: TradingView

Dogecoin’s RSI was also sideways, making it similar to SHIB’s RSI. Additionally, the MACD showed a bearish crossover. This looked concerning as it suggested further price declines in the coming days.

Source: TradingView

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