Dogwifhat (WIF) Sees Rise in Inflows, Could Start August on a Strong Note

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As July comes to a close, dogwighat’s (WIF) price may be ending it with a decrease. However, recent data reveals that the first few days of August may come with a different tune.

WIF trades at $2.30 even though it reached a monthly high of $2.89 on July 22. The price decrease can be linked to profit-taking from the previous hikes, but it could be time to recover.

Dogwifhat Traders Are Buying the Dip

While WIF’s price sinks, the Chaikin Money Flow (CMF) on the daily chart shows that the decrease may be short-lived as the reading climbs to 0.15. CMF measures accumulation and distribution over a given period of time.

When the rating increases, it means that there is a surge in buying pressure. However, a drop in the indicator’s position suggests that market participants are taking money out and selling.

The divergence between WIF’s price and the indicator’s status could be positive for the meme coin’s value. This situation suggests that traders are buying the dip, and the impact has yet to be reflected in the price.

WIF Chaikin Money Flow. Source: TradingView

In addition to the rising capital flow, the Weighted Sentiment rating around dogwifhat has increased. Typically, Weighted Sentiment gauges if there are more positive or negative comments about a crypto project.

A positive reading indicates that there are more favorable opinions online, while a negative reading suggests the opposite. For WIF, the Weighted Sentiment is currently -0.30, though this marks an improvement from July 29.

This rise implies that social media participants are abandoning their bearish acumen and tilting toward a bullish perception. Should the sentiment continue to be near the positive region, WIF may see increased demand, which can later lead to a higher price.

WIF Weighted Sentiment. Source: Santiment

WIF Price Prediction: Re-Accumulation Season Is Near

Based on the daily WIF/USD chart, the meme coin has erased almost half of July’s gains. As the price declines, it is approaching a crucial demand zone located between $2.14 and $2.20.

Apart from that, the price is on the cusp of rising above the 20 EMA (blue). EMA is a short form for Exponential Moving Average, and it measures trend direction. In most cases, if the price of a cryptocurrency is above the EMA, the trend is bullish.

However, if it is below, the trend is bearish. Thus, if WIF rises above the 20 EMA, it could validate the bullish bias that recently flashed. Should this be the case, the token’s price may rebound to $2.47 and, subsequently, $2.78.

WIF Daily Analysis. Source: TradingView

On the contrary, if the rate of money flow into WIF decreases, the price may be invalid. If that is the case, the cryptocurrency’s value may drop to $2.10.