YEREVAN (CoinChapter.com) — The Dogwifhat token ($WIF), a meme-inspired cryptocurrency, has recently shown signs of recovery, gaining over 20% in the past week. WIF’s value surged following its listing on the leading cryptocurrency exchange, Coinbase.
According to cryptocurrency analyst Ali Martinez, the TD Sequential indicator, a technical tool for identifying trend reversals, has issued a buy signal.
This signal, appearing on the chart, suggests a potential increase in the Dogwifhat price to $3.8, up from its current $3.5. The TD Sequential indicator identifies possible reversals by analyzing a series of nine price bars, with a buy signal typically indicating exhaustion of downward trends.
While this technical indicator signals a possible upward move, the broader data points to challenges in network activity and sentiment for the Dogwifhat token.
Declining Active Wallet Addresses Indicate Reduced Interest
Despite the potential for price recovery, the Dogwifhat token is experiencing a notable drop in user activity. Active wallet addresses, which measure unique daily user interactions, have declined significantly. From 17,000 on Nov. 13, the number has plummeted to 3,692 within a week.
This drop in active addresses coincided with a decrease in the Dogwifhat price from $4.20 to its current $3.11. Historically, declining wallet activity often indicates reduced engagement and lower market momentum.
The last significant spike in active wallets marked the highest level of activity since March 14, demonstrating the importance of user participation in sustaining price performance.
Bearish Sentiment and Weak Momentum Challenge $WIF Performance
Adding to these challenges, market sentiment around the Dogwifhat token remains bearish. Data from Santiment’s weighted sentiment metric shows that discussions about $WIF have turned negative. Historically, bearish sentiment has often aligned with further price weakness, potentially putting additional pressure on the Dogwifhat price.
Dogwifhat Weighted Sentiment. Source: SantimentTechnical indicators also point to fading momentum. For example, The Awesome Oscillator (AO), which measures momentum by comparing historical and recent price data, has started displaying red histogram bars. These readings suggest that bullish momentum is weakening, even though the indicator remains slightly positive.
If bearish trends persist, the Dogwifhat price could decline further, with technical indicators pointing to levels as low as $2.69. However, renewed engagement or a shift in sentiment could push $WIF back toward the $4.79 range. For now, conflicting signals keep the token’s outlook uncertain.
While the TD Sequential indicator offers hope for short-term recovery, broader market dynamics reveal that sustained growth will require stronger network engagement and improved sentiment.
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