Despite a brief surge in optimism following former U.S. President Donald Trump’s announcement of a potential U.S. Crypto Reserve, the broader crypto market remained largely stagnant over the past 48 hours. Among the most affected altcoins was Dogwifhat (WIF), which has been in a prolonged downtrend since its November 2024 peak of $4.8. The meme coin has consistently recorded lower highs and lower lows, signaling persistent bearish pressure.
Technical Indicators Highlight Bearish Outlook
At press time, WIF was trading below its 20 EMA, 50 EMA, and 200 EMA—confirming strong bearish sentiment. A deeper look into its price action over the past several months reveals an 86% decline from its all-time high. Notably, the altcoin has been confined within a falling wedge structure since December, with its lower boundary acting as dynamic support.
However, a recent break outside this pattern suggests heightened volatility ahead. The nearest resistance remains the 20-day EMA, but the critical resistance level sits at $1.4—still a significant climb from current prices. To establish a more convincing uptrend, WIF must reclaim its 50 EMA, a move that would likely attract stronger bullish momentum.
On the downside, immediate support rests in the $0.55–$0.56 range, dangerously close to its yearly low. A breach below this level under continued selling pressure could accelerate the downtrend further. Meanwhile, the Relative Strength Index (RSI) hovers around 39–40, indicating a strong bearish bias. A move above 50 would suggest a potential shift in momentum, with mild bullish divergence forming in price action.
Derivatives Market Signals Mixed Sentiment
According to Coinglass data, trading volume in WIF has declined over the past 24 hours, hinting at reduced activity and fading volatility. A significant drop in Open Interest (OI) suggests that many traders are exiting positions, which could lead to slower price movement unless a fresh catalyst reignites momentum.
Interestingly, the overall long/short ratio remains slightly below 1, favoring shorts. However, data from major exchanges like Binance and OKX indicates a tilt towards bullish positioning, suggesting that some traders are preparing for a potential recovery.
Also Read: Dogwifhat (WIF) Plummets 64%—Can Bulls Stop the Bleeding?
A Cautious Approach
Given the ongoing market uncertainty, traders should watch for multiple bullish confirmations before taking long positions on WIF. A strong push past the 50 EMA and RSI crossing above 50 would strengthen the case for a rebound. Until then, caution remains paramount amid WIF’s ongoing downtrend.
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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