- WIF price surged 15% after the Fed’s unexpected rate cut.
- Liquidity increased significantly and the derivatives market also showed strong bullish sentiment.
- WIF’s price could rise to $5 or higher if it breaks through certain resistance levels.
Dogwifhat (WIF), a meme-coin, has shown significant optimism recently. WIF price grew 15% intraday alongside Bitcoin’s (BTC) rise due to the Fed rate cut.
BTC advanced by 4.26%, trading at $62,408. BTC’s rise pushed the broader crypto market up by 4.5%, reaching a market cap of $2.15 Trillion.
This growth extended to various sector coins, including meme-coins like WIF crypto, which contributed to the overall meme market cap rising to $41.06 Billion.
WIF price has broken through the 20-day and 50-day EMA bands from the demand zone. To find out whether WIF will continue to rise from the demand zone or consolidate under the 200-day EMA band, keep reading for more insights.
How will BTC’s Surge Push the WIF Price Further?
The WIF crypto has shown impressive intraday returns, outperforming giants in the crypto space. This surge was triggered by the US Federal Reserve’s unexpected decision on September 18th to cut interest rates by 50 basis points, surpassing the anticipated 25-basis point cut and boosting demand for BTC.
Bitcoin, the dominant market leader with a 57.2% market cap dominance, often sets the trend for other cryptocurrencies. When Bitcoin shows significant momentum, both high-cap and low-cap coins tend to follow suit.
The recent rate cut has sparked optimism across the crypto market, leading to intraday gains for the top 100 cryptocurrencies, including WIF. The Fed’s surprise 50bps rate cut has driven Bitcoin’s price up, increasing investor optimism this September. With BTC pushing past $62,000, investors are now targeting $65,000 in the short term.
This bullish sentiment in BTC could drive the dogwifhat price higher, pushing it towards the 200-day EMA in the near-term.
WIF Price Witnessed Strong Liquidity Intraday
The recent surge in WIF’s price led to a 15% increase in its market cap, which soared to $1.722 Billion. It boosted its rank to 49 (CoinMarketCap intraday.
Per our WIF price analysis, the spot volume inflow also drew significant attention. Following the Fed news, the asset displayed a 110.48% rise in 24-hour volume, reaching $448.93 Million. This increased demand highlighted the significant liquidity pumped into WIF, pushing its price beyond dynamic EMA hurdles.
The intraday market cap-to-volume ratio was around 26%, indicating a strong bullish presence. This surge could signal growing interest for the growth to come in the upcoming sessions.
WIF Crypto’s Derivative Market Analysis
According to Coinglass, the derivatives market for WIF crypto has shown significant optimism, mirroring the spot market’s performance.
In the past 24 hours, derivatives volume surged by an impressive 118.28%, bringing the total traded value to $1.28 Billion. This surge indicates a growing demand for WIF in the derivatives market.
Similarly, WIF’s open interest has climbed to $232.13 million, marking a 16.16% increase from the previous session. The 24-hour long/short ratio stood at 0.9885, indicating dominance of short positions over long ones.
WIF crypto’s OI-weighted funding rates have shown a decrease in bearish sentiment, climbing to a positive 0.0068% in the past 48 hours. This shift signals growing market optimism for a rise in WIF’s price.
Additionally, $964.71K worth of short positions were liquidated, compared to $653.41K in long positions liquidated intraday. This scenario suggests a positive outlook for WIF crypto in the market.
These metrics highlight a strong bullish sentiment for WIF crypto, confirming the recent intraday price surge. The increase in open contracts and higher short-side liquidations suggest that WIF’s price could continue to rise.
Decoding: What WIF Price Can Do in Short-Term & Long-Term
When Bitcoin reached its all-time high in March, Q1-2024, WIF surged to $4.85. Since then, both have declined, with WIF experiencing a sharper drop. The fall in WIF’s price has formed a falling wedge, characterized by a series of lower lows in Q2 and Q3 of 2024.
Currently, WIF is up 15% intraday and is nearing the wedge’s upper border. The price action in Q3 has also formed a symmetrical triangle within the wedge. These patterns suggest that the next move could be significantly large, driven by market optimism and Bitcoin’s performance. The chances of a breakout are strong.
For WIF’s price to rise, it needs to show confidence by sustaining above the $2.31 change of character level. According to WIF price predictions, short-term targets are set at $2.31 and $3.00, while long-term targets are near $4.00 and $5.00. However, if confidence isn’t established, WIF might continue to consolidate.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
