Dogwifhat (WIF) has suffered a significant price correction, mirroring the broader cryptocurrency market’s downturn triggered by Bitcoin’s recent plunge below the $60,000 mark. The meme coin’s volatility has been amplified, with investors rushing to exit their positions, as evidenced by the massive withdrawals recorded over the past 24 hours.
The WIF price plummeted by 10% in a single day, sending shockwaves through the market. This sharp decline was accompanied by a dramatic $43 million drop in Open Interest, a metric indicating the total number of outstanding derivative contracts. This steep decrease underscores a growing sense of pessimism among investors and traders regarding WIF’s future prospects.
Technical indicators also paint a bearish picture. The Relative Strength Index (RSI) remains firmly entrenched in negative territory, suggesting weak buying momentum and continued downward pressure on the price. Unless a significant shift in sentiment occurs, WIF’s recovery path is likely to be arduous.
Price Outlook: A Rocky Road Ahead
After a meteoric rise of 51% in just 72 hours, WIF’s price has retreated to $1.64, erasing half of its recent gains. The meme coin is now grappling to hold onto the crucial support level of $1.52.
Reclaiming the $1.83 mark is essential for WIF to mount a sustained recovery and challenge the resistance at $2.01. Historically, this price point has acted as a pivotal support level, and recapturing it could potentially propel WIF towards $2.36.
Also Read: Dogwifhat (WIF) Soars 65% Amid Memecoin Revival – Can It Hit $2?
However, if WIF fails to defend the $1.83 support, a retest of $1.52 is on the cards. This time around, the selling pressure could be more intense, making a subsequent recovery even more challenging.
The cryptocurrency market remains highly volatile, and investors should exercise caution. WIF’s future trajectory depends on a combination of factors, including Bitcoin’s price action, overall market sentiment, and the meme coin’s ability to attract and retain investor interest.
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.
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