WIF at Risk of Crash? Dogwifhat Support Collapse

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.

Source: Trading View

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.

Source: Coinglass

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.