Meme coin Dogwifhat made a good debut today. This raised the question of whether it could rise further. Technical indicators point to a balanced trend for uptrend. According to crypto analyst Tiago Amaral, some conditions are required for the continuation of the upward trend. If these happen, it is possible for WIF to make a strong rally.
RSI shows WIF is not yet overbought
Meme coin WIF increased by more than 10% during the day. Thus, it became one of the top earners among meme coins. Despite this, it stands at 58.30 RSI. As this shows, it has not yet reached the overbought zone. This puts WIF in a neutral phase. It also shows that although there has been a price increase recently, the buying momentum has not reached extreme levels. Since WIF’s RSI remains well below the overbought threshold, there is additional room for the price to rise. This neutral RSI level means WIF can continue its upward trajectory without the risk of a major pullback.
WIFI RSI. Source: TradingViewADX shows the current trend is strong for meme coin
WIF’s ADX currently stands at 29.5. It has also shown a slight decline from above 35 in recent days. This shows that although the trend remains strong, its intensity has weakened slightly. ADX or Average Directional Index measures the strength of a trend without specifying its direction. Values above 25 generally indicate a strong trend, while values below 20 indicate a weak or trendless market. Despite the decline, an ADX level above 25 indicates that WIF is still in a strong trend.
WIF ADX. Source TradingViewAt the same time, WIF appears to be on the verge of forming a golden cross where its short-term EMA may cross above its long-term EMA, which is generally seen as a bullish signal. If this ‘golden cross’ occurs, it could trigger a new price increase, especially given the support of a strong ADX reading. This setup shows that WIF has upside momentum potential.
WIF price prediction: 30% upside potential for Meme coin!
WIF’s EMA lines are currently in a bearish configuration. Also, the short-term EMAs are below the long-term EMAs. This points to downward pressure recently. However, recent price movements have caused the short-term EMAs to move significantly higher. Therefore, this indicates the potential for a trend reversal. If these short-term lines cross over the long-term ones, they will form a ‘golden cross’, a classic bullish signal that could lead to a renewed price increase. If this bullish crossover occurs, WIF price could aim to surpass the resistance levels near $2.6, $2.8, and $2.97, indicating a potential price increase of 30%.
WIF EMA Lines and Support and Resistance. Source: TradingViewThe opinions and predictions in the article belong to the analyst and are definitely not investment advice. cryptokoin.comWe strongly recommend that you do your own research before investing.
