Despite the rally, WIF is still struggling 🔥🔥🔥
The Solana-based Meme coin is now losing ground after the price failed to settle above $3.5 over the past month, dampening investor enthusiasm.
Investor behavior always affects WIF price. It has been affected by investor apathy over the past few days. It is clear from the open interest that not many people are inclined to put money into the asset.
Open interest (OI) represents the total number of open derivative contracts, such as futures or options, that have not yet been settled. It indicates market activity and liquidity, providing insights into potential price movements.
Over the past month, WIF’s OI has only increased by $70 million, from $236 million to $310 million, indicating that little money has entered the futures market.
Secondly, Memecoin is negatively correlated with Bitcoin, the world’s largest crypto asset. This means that WIF’s price is negatively correlated and is more likely to move in the opposite direction of BTC’s price.
So over the weekend, Bitcoin and other markets saw an increase in price, while WIF price fell. This solidified the negative correlation, and until this changes, Solana-based meme tokens are likely to continue to witness opposite results to Bitcoin.
WIF price fell out of the ascending channel, which is considered a bullish channel. A breakout above this level would see the Meme coin rise to $3.6 and beyond.
However, it faces stiff resistance at $3.5, making it a critical hurdle to overcome.
The weekend decline pushed WIF price further below $2.50, where it has recovered slightly to $2.69 as of the time of writing. Failure to break above the $2.75 resistance level would see it fall back to $2.36.
On the other hand, WIF price would be able to flip $3.00 to support, invalidating the bearish thesis.
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