Dogwifhat (WIF), the popular Solana-based meme coin, has turned bearish as Bitcoin (BTC), the world’s largest cryptocurrency, broke through its crucial support level. After this incident, sentiment in the cryptocurrency landscape has shifted significantly to a downward trend.
Dogwifhat Technical Analysis and Upcoming Levels
According to expert technical analysis, WIF has turned bearish as it broke its crucial support level at $2.10 and is about to close a daily candle below it. Based on recent price action and historical momentum, if the meme coin closes its daily candle below that support, there is a high chance of a significant 35% price drop in the coming days.
Currently, WIF is trading below the 200 Exponential Moving Average (EMA) on the daily time frame, indicating a downtrend. However, this bearish statement only holds true if the meme coin closes its daily candle below the $1.97 level, otherwise it could fail.
WIF’s bearish confirmation
In addition to the technical analysis, the on-chain metrics further support WIF’s negative outlook. According to the on-chain analytics company Mint glassthe WIF long/short ratio currently stands at 0.88, indicating strong bearish sentiment among traders.
Furthermore, open interest has fallen 7.9% over the past 24 hours, indicating that traders’ positions have been liquidated as the price began to fall and traders became hesitant to build new positions.
However, falling open interest and a long/short ratio below 1 indicate weak bearish sentiment as traders hold short positions but no significant new short positions are forming.
Current price momentum
At the time of writing, WIF is trading around $1.98 and has experienced a price drop of over 6.9% in the past 24 hours. During the same period, trading volume increased by 13%, indicating the participation of traders and investors compared to the day before.