WIF Crypto Price Prediction: Will Memcoin Reach $10 Amid Recent Decline?

• A break above the $3.25 resistance could send WIF to $6.50.
• The supply of stablecoins has shown that market participants have the purchasing power to push the price higher.

Solana-based memcoin [WIF] It lost 16.36% of its value in the last 30 days.

This performance was in contrast to price action that saw WIF achieve a staggering 1,650% year-over-year (YTD) increase.

Not many cryptocurrencies can boast such a display this year. But with a strong community, WIF has managed to outperform almost all other popular memecoins in this cycle.

As of this writing, the price of WIF is $3.02. But before this latest drop, the token was close to reaching $5. However, the attempt was rejected at $4.84, an all-time high.

The bulls have the upper hand

Despite the decline, many market participants are confident that the token will reach a new high soon. For some, the price of the cryptocurrency may reach $10. For others, a 5x increase to $15 remains a reasonable price expectation.

If the WIF reaches $10, this means that the market value of the project may exceed $10 billion. However, it is important to look at the possibility before concluding.

The first indicator is AMBCrypto It is considered The financing rate was. If financing is positive, it means that the equity price of the asset is trading at a premium compared to the index value.

In this case, most bets are tilted towards the upside. On the other hand, negative financing means that the underlying price of the cryptocurrency is at a discount to the spot value.

This also points to a broader bearish sentiment in the derivatives market.

At press time, the WIF funding rate was 0.008%, lower than it was seven days ago. But one thing we noticed is that the price of WIF has been moving higher over the past hour.

Source: Santiment

The appropriate inference for this movement is that a portion of the spot volume was buy orders. As such, the WIF price can be set to bounce.

WIF needs to break $3.25

Validation of this bullish prediction could send WIF towards $3.65 to start. Regarding long-term goals, AMBCrypto analyzed the token from a technical point of view.

On the 4-hour chart, Supertrend is flashing a buy signal (green) at $3. However, there was a sell wall (red) at $3.25. Previously, WIF attempted to overcome this resistance,

However, the bears rejected the move, sending the price back to the brink of a decline to $2.76. However, the Money Flow Index (MFI) showed that the WIF may not fall to such a low level.

This is because the MFI reading was close to 60.00, indicating a significant amount of liquidity flowing alongside WIF in the cryptocurrency market.

If this reading continues to rise, the bulls can successfully break the $3.25 resistance level. However, the Relative Strength Index (RSI) was below the midpoint.

But the reading showed signs that it may rise beyond the 50.00 level, confirming the bullish momentum. If this is the case, WIF could be a move set towards $6.50.

However, a very bullish situation could push WIF price to $10 in the long term.

Source: Trading View

For some, this may happen before the end of 2024. However, others believe that the memecoin price may not reach double digits this year.

Open interest is declining but it is not the end

Furthermore, WIF’s open interest (OI) stood at $251.38 million at press time. Increases or decreases OI based on net positioning. If the index rises, this means an increase in liquidity allocated to contracts.

In this case, buyers are aggressive. Conversely, sellers are aggressive when the OI declines. According to data from Santiment, the OI for WIF was almost 2 times lower than the value in March.

If traders decide to open more trades, the WIF price may recover. However, it may take a lot of capital to push the symbol towards its previous high.

But AMBCrypto notes that it may not be that difficult to achieve. This was due to the supply of stablecoins, held by WIF whales, valued at over $5 million.

Source: Santiment

As of this writing, this metric has begun to rise, Indicating That the big investors in WIF were armed enough to push the price higher.

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If stablecoins are deployed to purchase the token, a significant price increase may occur.

However, it may be impossible for WIF to replicate the 883% increase in 90 days. However, an increase to $10 is a possibility for the token. If (and when) this will happen is something AMBCrypto cannot guarantee.