Dogwifhat (WIF) showed a double-digit loss, reflecting a sharp price drop of over 10% in a single day.
Dogwifhat futures contracts have decreased by approx 26.35%.
As Bitcoin (BTC) faces a notable dip, the Solana-based memecoin Dogwifhat (WIF) has recorded significant volatility with a double-digit loss. In the last 24 hours, WIF displayed a sharp decline of over 13.3%, reflecting the broader impact of Bitcoin’s downturn on the memecoin market.
The memecoin, which fell to $1.09 on August 5, initially saw a rebound of over 23%, approaching $2 over the weekend. However, this rally proved unsustainable, with the price dropping back to the $1.62 zone. At the time of writing, Dogwifhat is trading at $1.66, with a market cap of $1.66 billion.
Analysts are now speculating whether WIF might dip back to the $1 mark. Some experts predict that Dogwifhat could retest the critical support level at $1.50. Additionally, the Open Interest (OI) for Dogwifhat futures has seen a notable decrease, falling 26.35% from $277 million to $204 million in just three days, as reported by CoinGlass. This decline in OI suggests a weakening in market confidence.
Is Dogwifhat Set for Further Decline?
Despite a 38% rise over the past week, the cryptocurrency remains in a bearish phase. The memecoin has fallen 13.3% in the last day, with its price dropping from $1.87 to $1.62. The bearish trend is further confirmed by TheNewsCrypto’s dogwifhat price prediction, highlighting a strong downward movement with the moving average and average directional index indicating continued bearish pressure. The ADX showed a negative index of 26, surpassing the positive index of 17.
Further adding to the bearish sentiment, the liquidation of long positions has increased over the past week. If the recent daily losses continue, WIF might test significant support below $1.30. Also, there’s a risk that the price could drop to $1.05 zone.
However, the recent weekly surge suggests that WIF market sentiment might change hands and rise further. In that case, WIF could face immediate resistance at $1.92, with a further resistance level at $2.30.
Finally, the coin’s price is too far from the $10 forecast previously made by Arthur Hayes, former CEO of BitMEX.
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