Seller Exhausted Is WIF Ready to Break Through

CoinJelly News Report:
The random RSI of WIF has dropped to 11, indicating oversold conditions for the meme coin.
The number of WIF short sellers has reached a monthly high, increasing the possibility of shorting.
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After a 4.7% increase in the past 24 hours, the trading price of WIF is currently at $2.57 at the time of writing. WIF, the largest meme coin
Solana [SOL]
, has been under bearish pressure as it has dropped 2.5% in the past seven days.
WIF’s recent gains have come from the recovery of the Solana meme coin ecosystem. Data from
CoinGecko
shows that the market value of meme coins based on SOL has surged nearly 7% in the past 24 hours;
Following these increases, WIF now shows signs of a reversal from a bearish trend. On the daily chart, WIF’s random relative strength index (RSI) has dropped to an oversold level of 11.
This indicates that the bearish trend of WIF is a result of selling activity aimed at minimizing losses by traders. The Stoch RSI also converges with the signal line below, suggesting a potential reversal;
However, the moving average convergence divergence (MACD) shows bearish prospects as it is below the signal line, and the histogram bars are negative. This indicates that bears are attempting to control the price movement.
If WIF succumbs to the bearish trend, it could drop to the 0.236 Fibonacci level ($2.2);
However, if sellers exhaust their positions and buyers intervene, WIF could experience a strong rebound above $3, reaching the 1.618 Fib level of $3.50;
Short sellers are increasing their positions;
WIF’s short positions have suddenly increased. This can be seen from the long/short ratio, which has dropped to 0.90, the lowest level in 30 days. 52% of derivatives traders have opened short positions on WIF, while 47% have opened long positions;
The increase in WIF short sellers is further reflected in its funding rate. This indicator has recently surged to a several-week high of 0.01%, indicating that long traders are willing to pay higher fees to maintain their positions;
However, at the time of writing, the funding rate has dropped to 0.0054%, suggesting that long traders are closing their positions.
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The surge in short positions increases the possibility of a short squeeze. If WIF continues its upward trend, these short sellers may be forced to buy, further supporting the upward trend;
The positive crowd sentiment surrounding the WIF index also indicates the potential for a continued upward trend.
Market forecast
Positive sentiment may lead to buying activity, weakening the bearish trend.