What is the latest situation for DOGE and WIF, memecoins that are experiencing selling pressure with the increase in Bitcoin dominance?
Memecoins performed poorly in the second week of December. Most memecoins protected their investors by experiencing double-digit declines. The selling pressure in DOGE and WIF in particular did not go unnoticed. So will these two popular memecoins continue to decline? Which levels should be monitored during this process?
Unexpected drop in Dogecoin (DOGE)
A few weeks ago, the price of Dogecoin showed an upward momentum towards $1. However, this week, the price of DOGE lost 10 percent of its value. Dogecoin’s Money Flow Index (MFI) measures the buying and selling pressure in the market. DOGE’s MFI fell from 75.57 to 24.12.
The data in question shows that investors who profited from the price increase in the previous weeks are selling. The decrease in trading volume indicates that DOGE has not yet entered the recovery period. If this trend continues, the price of Dogecoin could fall to $0.37. However, if the accumulation of the popular memecoin increases, Dogecoin could rise again towards the $1 target.
Dogwifhat (WIF) faces selling pressure
Like DOGE, WIF has also seen a decline this week. The 25% drop in the popular memecoin’s price was due to increasing selling pressure.
WIF price has formed a head-and-shoulders pattern, signaling a bearish signal. This formation usually indicates that an asset is likely to experience further declines in value. If the current trend continues, the Solana-based memecoin could drop to $1.88. However, this scenario may not happen if the bulls defend the $2.35 support. In such a case, WIF could rise to $3.93.
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