The popular Solana-based meme coin, Dogwifhat (WIF), has recently turned bearish due to Bitcoin (BTC) breaching its crucial support level, causing a shift in sentiment across the cryptocurrency landscape towards a downtrend.
Technical Analysis and Upcoming Levels for Dogwifhat
Expert technical analysis indicates that WIF has become bearish as it broke below its critical support level of $2.10 and is on track to close a daily candle below it. Based on recent price action and historical momentum, there is a high likelihood of a significant 35% price decline in the coming days if the meme coin closes below this support level.
Currently, WIF is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, signaling a downtrend. However, this bearish scenario will only hold true if the meme coin closes its daily candle below the $1.97 level.
Bearish Confirmation for WIF
On-chain metrics also support the negative outlook for WIF. According to on-chain analytics firm Coinglass, the WIF long/short ratio currently sits at 0.88, indicating a strong bearish sentiment among traders.
Furthermore, the open interest for WIF has decreased by 7.9% in the past 24 hours, indicating traders’ liquidation of positions as prices decline and reluctance to enter new positions.
Despite the falling open interest and a long/short ratio below 1, suggesting a weak bearish sentiment, there has been a lack of significant new short positions being established.
Current Price Momentum for WIF
As of now, WIF is trading around $1.98, experiencing a price drop of over 6.9% in the last 24 hours. The trading volume has increased by 13% during the same period, indicating active participation from traders and investors compared to the previous day.
