The price of Dogwifhat (WIF) has just experienced a significant drop, falling about 15% in the past 24 hours, breaking below the $1.60 mark for the first time in four months. This drop comes on the back of a 47% decline over the past 30 days, showing strong selling pressure in the market, with many major meme coins also dropping more than 10% during the same period.
Currently, there are no signs of the downtrend stopping, and technical indicators suggest further decline is possible. If WIF cannot stabilize, it may soon test the support level of $1.32, and if it loses this level, the price could further drop to $1.07. However, if market sentiment towards meme coins improves, a reversal could occur, creating opportunities for WIF to challenge the resistance level of $1.73 or even return to $2.20.
The RSI of WIF has fallen into the oversold region.
The relative strength index (RSI) of Dogwifhat has fallen to 17.8, marking a deep entry into the oversold region after remaining neutral from December 20 to January 7. The RSI is a popular momentum indicator that measures the speed and magnitude of price changes on a scale of 0 to 100.
Values above 70 indicate an overbought condition, which could lead to a pullback, while values below 30 indicate an oversold condition, typically signaling that the price may rebound.
Currently, the RSI of WIF is at 17.8, indicating extremely strong bearish momentum in the market. Such a low RSI suggests that the recent sell-off may have been excessive, and if buying returns, this could pave the way for a rebound.
However, the significant drop also reflects a weak market sentiment. Without new buying interest, the WIF price may continue to consolidate or further decline in the short term.
The downtrend is becoming increasingly strong.
The average directional index (ADX) of WIF surged from 19.9 to 43.7 in just one day. The ADX is a technical indicator used to measure trend strength, ranging from 0 to 100, regardless of whether the trend is bullish or bearish.
Values above 25 indicate a strong trend, while values below 20 indicate weak momentum or no clear trend. The rapid rise of the ADX suggests that the current trend is significantly strengthening.
As WIF is in a downtrend, the ADX is at 43.7, highlighting an increase in selling pressure. This indicates that selling pressure is rising, and without buying pressure intervention, the price may continue to fall.
Is there a possibility of a further 30% adjustment?
If the downtrend of Dogwifhat continues, the price may soon test the next key support level of $1.32. If this threshold is breached, the price could further drop to $1.07, the lowest price since mid-August 2024. This move equates to a potential 30% decline from the current price.
Conversely, if market sentiment towards meme coins improves, the WIF price may benefit from new interest. In this case, the price could rise to challenge the resistance level of $1.73. If this level is successfully breached, WIF may continue its upward momentum, with the next target being $2.2.
