Dogwifhat reaches a decisive point – WIF has a fall of 25%?

* The WIF funding rate based on OI volume is nearly -0.00103%, indicating strong bearish sentiment.

• 51.44% of global WIF traders are in a bearish position, while 48.56% are in a buying position.

Dogwifhat (WIF), the famous memecoin on the Solana platform, is struggling near an important support level after a strong price increase. According to CoinMarketCap, although this memecoin has risen more than 75%, it has not been able to hold on the chart and may soon face a fall.

At the time of writing, WIF is trading at nearly 0.559 USD after falling 5.5% in the past 24 hours. This bearish trend seems to have instilled fear among traders and investors, leading to a decline in market participation.

Not only that, during the same period, the volume of memecoin transactions fell by 40%. This decline, along with the price, indicates weak bearish momentum for the asset.

Price Action and Technical Analysis of Dogwifhat (WIF)

According to TinTucBitcoin's analysis, WIF is at a critical level. The daily chart shows that if market sentiment does not change and memecoin does not hold the support level of 0.545 USD, it could revert back to a bearish trend.

Source: TradingView

If the WIF price breaks and closes below 0.545 USD, it may fall 25%, potentially reaching 0.41 USD in the coming days.

On the contrary, if the memecoin maintains this support level and stays above 0.545 USD, it still has a chance to gain upward momentum in the coming days.

At the time of writing, the Chaikin Money Flow (CMF) indicator of WIF is in the positive zone, with a value of +0.04. This indicates strong buying pressure in the asset. However, this will only be maintained if the memecoin stays above the support level.

On-chain indicators bearish

Although the price action of this cryptocurrency is unclear, the on-chain analysis company Coinglass has issued a bearish signal. This indicates that the price of WIF may fall in the coming days.

At the time of writing, the WIF funding rate by OI volume is nearly -0.00103%, indicating a strong bearish sentiment as many traders are going against memecoin.

Source: Coinglass

This bearish outlook is further confirmed by the long/short ratio of WIF, with a value of 0.944. This index indicates the preference for short positions.

Additionally, data shows that 51.44% of global WIF traders are in short positions, while 48.56% are in long positions.

Source: Coinglass

This index clearly shows that traders have a negative outlook on memecoin WIF and may soon record a bearish trend on the chart.

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