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"WIF's $2 Hinge: U.S. Inflation Data Looms Large"

Coin WorldThursday, Jan 30, 2025 7:50 am ET

1min read

WIF's potential recovery to $2 hinges on upcoming U.S. inflation data, as market sentiment and technical indicators suggest a mixed outlook for the memecoin. The Federal Reserve's rate decision sparked a 16% pump in WIF, with Bitcoin's climb to $105K lifting several altcoins and memecoins. However, WIF's ability to top $2 again remains uncertain.

The On-Balance Volume (OBV) indicator spiked on WIF's daily price chart, indicating substantial trading volume. On February 29, WIF saw a massive $326M in daily trading volume, significantly higher than the bid volumes seen in March 2024. However, the OBV had not made a higher high to signal further traction as of this writing. Additionally, the daily Relative Strength Index (RSI) recovered partly from the oversold territory but was still below neutral, reinforcing the need for sustainable buying pressure.

While the bearish technical chart reading could change after the U.S. inflation data is revealed, the current reading does not paint a strong case for WIF's jump to $2 (overhead resistance zone, red). However, weak U.S. inflation data (PCE index) could accelerate WIF's rally to $2 or above.

Spot demand increases were evident during the rally, with strong demand from both the Spot and Futures markets. Open Interest (OI) rates and Cumulative Volume Delta (CVD) both showed an uptick, indicating massive leveraged trading partly fueled the surge. Although OI later declined, the CVD spot climbed higher, suggesting that demand from the Spot market remained steady despite waning Futures Interest.

In conclusion, WIF can potentially extend its recovery to $2 if upcoming U.S. inflation data favors risk assets. However, a bearish sentiment could drag the memecoin below $1 again. Market participants should closely monitor the U.S. inflation data and technical indicators to make informed decisions about WIF's future price movements.

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