[Dogwifhat price plummets as open interest drops: Is it time to buy? 】
Dogwifhat's price decline is in line with a bearish trend in the WIF derivatives market, with open interest falling 10% in the past day to $266 million. Meanwhile, trading volume surged 40% to $1.51 billion, suggesting the downward trend may not continue.
Total liquidation of long positions reached $571,000, signaling caution in the market. The difference between increased trading volume and falling open interest shows a lack of confidence among traders and could signal that a market correction is imminent.
Over the past 24 hours, WIF prices have fluctuated significantly, recording a low of $1.83 and a high of $2.04. At the time of writing, Dogwifhat is trading around $1.88, down 6% during European trading hours. WIF prices have fallen by 16% in the past month and by a further 27% in a week, with investors concerned about its short-term stability.
Technical indicators on the four-hour chart suggest a possible reversal for WIF/TetherUS. The relative strength index (RSI) is at 29, which is in oversold territory. The Moving Average Convergence Divergence indicator (MACD) shows that the bearish trend is weakening, with the MACD line at -0.142, just above the signal line at -0.122.
If the bears increase the pressure, the asset could fall below the $1.80 support and extend towards $1.70 and $1.50.
Most meme coins have declined over the past 24 hours. Dogecoin (DOGE) is down 3.3%, Shiba Inucoin (SHIB) is down 3.2%, Pepe Coin (PEPE) is down 4.7%, Bonk (BONK) and Floki (FLOKI) are down 1.2% and 4.2% respectively. This suggests that investors are less interested in meme coins following recent market volatility.
If bulls return, Dogwifhat price could break above the $2.00 resistance, potentially heading towards $2.50 or even $3.00. This upward momentum could attract more buyers, potentially triggering a wave of gains as investor sentiment turns optimistic.
