A Former Memecoin Leader Losing Momentum
In 2024, dogwifhat [WIF] stood out as one of the top-performing cryptocurrencies, with a price increase of over 1,000%. This memecoin dominated the market, but its impressive growth began to wane in December, with its value dropping by 42%.
As of January 1, 2025, WIF was trading at $1.77, having seen an additional 4% drop in the past 24 hours. This continued decline resulted in the formation of a “death cross” on the daily chart.
What Does the “Death Cross” Mean for WIF?
The “death cross” occurred when the 50-day exponential moving average (EMA) fell below the 200-day EMA—specifically at $2.50 and $2.55, respectively. This technical indicator often signals the start of a long-term bearish trend.
The WIF death cross appeared above the current price level, suggesting that traders might have already priced in the bearish momentum. However, if WIF fails to hold support at $1.72, the price could drop to the Fibonacci 1.618 level, approximately $0.31.
The Relative Strength Index (RSI) also indicates increased selling pressure, with its value dropping to 32, nearing oversold territory. This suggests weak buying interest, unable to counterbalance the selling pressure.
Oversold RSI: A Potential for a Rebound?
Typically, an oversold RSI precedes a short-term price correction upward. However, if buyers remain hesitant, WIF could consolidate within its current range without significant upward movement.
Optimism Among Long Traders
Data from Coinglass reveals a strong majority of long traders on Binance, with 83% holding long positions on WIF—the highest percentage in nearly a month. Positive funding rates further confirm traders’ willingness to pay fees to maintain their positions.
However, this dominance of long positions could backfire. A sudden price drop could trigger massive liquidations, further pushing WIF’s price downward.
Can WIF Reclaim Its Spot as Solana’s Top Memecoin?
WIF’s price drop has reduced its market capitalization to $1.8 billion, making it the fourth-largest memecoin on the Solana blockchain. It has been overtaken by BONK [BONK], ai16z [AI16Z], and Pudgy Penguins [PENGU].
To regain its top spot, WIF would need a strong rally to outperform its competitors. This rally will depend on improved market sentiment and renewed confidence among traders.
Conclusion
Dogwifhat is facing challenging times as technical indicators point to a continued bearish trend. The future of WIF hinges on its ability to maintain key support levels and attract new investors. Whether WIF can rise again to reclaim its position as a leading memecoin remains uncertain, and only time will tell.
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