The well-known memecoin dogwifhat [WIF] is currently facing a continuous decline. This downward trend has been ongoing since the 10th of December. The inability of buyers to protect the $2.51 mark has intensified the decrease, indicating a decrease in buyer confidence.
This decline in performance is not unique to WIF alone, as the memecoin sector as a whole is witnessing similar struggles. Even Dogecoin [DOGE], the largest memecoin in terms of market capitalization, is encountering difficulties in its recovery. Unlike Dogecoin, WIF is not just striving for recovery but for survival.
WIF Drops Below November Lows After Sustained Downward Pressure
An analysis of the price chart demonstrates the vulnerability of WIF. The gains made in November were not sustained as expected, unlike the performance of Dogecoin during the same period. While Dogecoin managed to hold off sellers at the 50% retracement level, WIF lacked the necessary strength to do so.
The continuous selling pressure became evident as the bears claimed the 78.6% retracement level just a month after the rally commenced. In the subsequent month, this level was not even tested as resistance.
Both the OBV and RSI indicators paint a bleak picture for WIF. The OBV has been steadily declining over the past six weeks, possibly indicating a further downturn. With the RSI at 29.2, showing oversold conditions, a potential price rebound is not yet in sight.
Furthermore, sentiment analysis since late November has predominantly been bearish, and social media engagement regarding dogwifhat has notably decreased. This suggests a waning interest in WIF within the public sphere.
The next significant support level to monitor is the 123.6% extension level at $1.18. There might be a slight recovery towards the $1.55-$1.6 range, where recent selling pressure intensified. Traders should consider short trades in the near future.
Disclaimer: The information provided is the writer’s opinion and should not be considered as financial, investment, or trading advice.