Dogwifhat (WIF), the popular Solana-based meme coin, turned bearish as Bitcoin (BTC), the world’s largest cryptocurrency, broke its key support level. Following this breakdown, sentiment across the entire crypto landscape shifted significantly to the downside.
Dogwifhat Technical Analysis And Upcoming Levels
According to expert technical analysis, WIF has turned bearish as it broke the key support level at $2.10 and is about to close the daily candle below it. Based on recent price action and historical momentum, if the meme coin closes the daily candle below that support level, there is a possibility of a significant 35% drop in the price in the coming days.
Currently, WIF is trading below the 200 Exponential Moving Average (EMA) on the daily time frame, indicating a bearish bias. However, this bearish thesis will only be valid if the meme coin closes the daily candle below $1.97, otherwise, it could fail.
WIF Discount Confirmation
In addition to technical analysis, on-chain metrics further support WIF's negative outlook. According to on-chain analytics firm Coinglass, WIF's long/short ratio is currently at 0.88, indicating strong bearish sentiment among traders.
Additionally, open interest has decreased by 7.9% over the past 24 hours, indicating liquidation of trader positions as prices start to fall and traders are hesitant to build new positions.
However, the falling open interest and long/short ratio below 1 indicate weak bearish sentiment, as traders hold short positions but no significant new short positions are being formed.
Current Price Momentum
At press time, WIF was trading at nearly $1.98 and had fallen more than 6.9% in the past 24 hours. During the same period, its trading volume increased by 13%, indicating increased participation from traders and investors compared to the previous day.
