Solana-based memecoin Dogwifhat (WIF) is facing headwinds as its open interest (OI) tumbles and price dives.
The digital asset, which has seen a rollercoaster ride since its inception, is now grappling with a decline in market sentiment. According to CoinGlass data, WIF’s OI, a measure of outstanding futures contracts, has dropped by a significant 28% in just a week, signaling waning investor confidence.
Concurrently, the coin’s price has plummeted by over 35% since July 27, currently trading at $1.67. This sharp downturn has sparked concerns among traders, with many predicting a retest of the crucial $1.50 support level.
Several prominent crypto analysts have echoed this sentiment. Cryptorphic, a well-known industry figure, noted that WIF is undergoing a correction phase and is likely to gravitate towards the lower support trendline between $1.50 and $1.70. Other experts, including Scient and CryptoJack, have also shared similar views, emphasizing the potential for a retest of the $1.50 mark.
The declining OI further underscores the bearish outlook. With $11.89 million in short positions at risk, traders appear hesitant to bet on a quick rebound. A further 10% price drop to $1.50 could also liquidate $7.55 million in long positions, exacerbating the downward pressure.
Also Read: Investor Turns $5,340 Into $24 Million by Selling 14.53M Dogwifhat Tokens—A 4,497x Profit!
These developments stand in stark contrast to the bullish predictions made by Arthur Hayes, former BitMEX CEO, who in March confidently predicted a $10 price target for WIF. While the coin did experience a brief surge, it has since retreated, falling out of the top 50 cryptocurrencies by market capitalization before reclaiming its position at number 47.
As WIF navigates this turbulent period, investors are closely watching its price movements and open interest for clues about its future trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
