After reaching a peak of $1.9 in the previous month, dogwifhat [WIF] has been following a downward trajectory. During this period, the meme-based cryptocurrency has been establishing progressively lower peaks and troughs.
Currently, dogwifhat is trading at $0.6153, indicating a 7.33% downturn based on daily data.
Moreover, looking at the weekly and monthly charts, the meme coin has experienced decreases of 10.63% and 63.14% respectively.
Given this ongoing decline, WIF appears poised for further deterioration if bearish sentiments persist. The question remains: will WIF continue to decline, or have sellers exhausted their influence?
Is the Free Fall of dogwifhat Set to Persist?
According to analysis by CryptoCrypto, dogwifhat is under significant downward pressure, with bears dictating the market sentiment.
The recent bearish crossover observed on the Stoch RSI serves as confirmation of this downward pressure. The crossover implies an increasing downward momentum for the meme coin.
Subsequently, the asset is incurring more losses than gains in recent times.
The sustained decrease in the +DI of DMI, coupled with a comparatively high ADX, underscores the prevailing downward force on the market.
The negative index has surged to 43.3 and now surpasses the positive index, which has dwindled to 13.
When the directional movement index demonstrates this configuration, it indicates a robust downward momentum.
Further analysis reveals the bearish trend as evidenced by the persistently negative Delta for dogwifhat in recent days.
A negative Delta implies that selling pressure outweighs buying pressure, hinting at a potential continuation of the current trend.
In addition, the Open Interest (OI) per exchange for dogwifhat has declined from $89 million to $67 million within the last week.
A reduction in OI implies that current investors are closing their positions, while new investors are refraining from entering the market.
This reflects a pronounced bearish outlook, indicating waning investor confidence in the market’s future prospects.
What Lies Ahead for WIF?
Given the prevalent bearish sentiment, WIF is currently testing a crucial support level of approximately $0.61. To initiate a bullish reversal, the meme coin must sustain its position above $0.61.
Consequently, a breach below this threshold would likely push dogwifhat towards $0.5 or even $0.44, marking a new low for the year.