Dogwifhat (WIF), the popular Solana-based meme coin, has joined the bearish trend sweeping the cryptocurrency market following Bitcoin’s recent breach of a crucial support level. Technical analysis suggests that WIF is poised for a potential 35% decline, as it faces the risk of closing below a key support level.
Technical Analysis – A Bearish Outlook
According to expert analysis, WIF’s bearish trajectory is evident from its breach of the $2.10 support level. If the daily candle closes below this level, it could trigger a significant price drop in the coming days.
The meme coin’s position below the 200-day Exponential Moving Average (EMA) further reinforces the bearish sentiment. However, a close above the $1.97 level could invalidate this bearish thesis.
On-Chain Metrics – A Weak Bearish Signal
On-chain data from Coinglass reveals a long/short ratio of 0.88 for WIF, signaling a strong bearish sentiment among traders. Additionally, a 7.9% decline in open interest over the past 24 hours indicates potential liquidation of positions as the price declined and traders hesitated to take on new positions.
Despite the bearish sentiment, the falling open interest and a long/short ratio below 1 suggest a weak bearish signal. This indicates that while traders are holding short positions, there is limited interest in forming new short positions.
Current Market Dynamics
At press time, WIF is trading near $1.98, reflecting a 6.9% price decline in the past 24 hours. The 13% increase in trading volume during this period suggests heightened investor interest and activity.
Also Read: Dogwifhat (WIF) Faces 4.28% Drop – Are We Heading Back To Bearish Territory?
Dogwifhat’s bearish outlook aligns with the broader cryptocurrency market downturn. Technical analysis and on-chain metrics point to a potential significant price decline. However, the weakness in the bearish sentiment, as indicated by the falling open interest and long/short ratio, suggests that the extent of the decline may be limited.
Investors and traders should closely monitor WIF’s price action and key support and resistance levels to make informed decisions.
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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