📉 Dogwifhat Coin Suffers Price Decline
The dog-themed meme coin, Dogwifhat (WIF), has seen a significant drop in its value in recent days. Trading at $1.85, WIF’s price has plummeted by 29% over the past week. Technical indicators suggest that the coin faced substantial selling pressure, raising concerns of further declines in its value.
🔸 What Led to the Price Drop?
The WIF price fell below its ascending channel’s lower line, considered a support level, on July 23, leading to the 29% drop, as evidenced by the charts. This fall below the support level typically indicates that the bulls were unable to defend the price, signaling a downward trend and heightened selling pressure.
Alongside the price drop, WIF’s daily trading volume surged by 127% over the past week, according to data from Santiment. This increase in trading volume, amidst a declining price, suggests significant short selling activity among meme coin holders.
🔸 Can WIF Recover Soon?
The divergence between WIF’s price and trading volume reveals the dominance of selling activity. The weighted sentiment for WIF is currently at -0.19, further indicating a bearish trend. Generally, an uptick in trading volume during a price decline reflects a bearish market sentiment.
🔸 Key Insights
Valuable Inferences:
– WIF experienced a 29% decline after failing to maintain its support level.
– Daily trading volume for WIF increased by 127% during the price decline.
– The token’s weighted sentiment is in the negative zone at -0.19.
– Relative Strength Index (RSI) and Money Flow Index (MFI) are at 38.24 and 32.47, respectively, indicating oversell conditions.
– If the downtrend continues, WIF’s price could drop to $1.48; a reversal could see it rise to $2.28.
In reviewing WIF’s fundamental indicators, a decrease in demand among market participants is evident. The Relative Strength Index (RSI) and Money Flow Index (MFI) stand at 38.24 and 32.47, respectively, highlighting oversold conditions.
