Miami, Florida — The memecoin Dogwifhat (WIF) is facing increasing pressure as it struggles to maintain a critical support level following a recent surge in popularity. Although WIF’s price spiked by over 75% in a short period, market conditions suggest that its upward momentum may falter.
As of the latest figures, WIF is trading around $0.559, marking a decline of 5.5% within the past 24 hours. This drop has created unease among traders, leading to a noticeable decrease in market participation. Additionally, trading volume for WIF has decreased by 40% during the same period, signaling waning interest in the asset.
The memecoin’s recent price movement has positioned it at a crucial juncture, according to market analysts. If the bearish sentiment persists and the price fails to hold above the key support level of $0.545, WIF could face a significant downturn, potentially plummeting to $0.41 within days.
Technical analysis reveals that the Chaikin Money Flow (CMF) indicator is currently showing a positive reading of +0.04, suggesting some buying interest. However, this bullish signal will be contingent on WIF remaining above the critical support level, raising the stakes for traders on both sides.
On-chain data from analytics firm Coinglass paints a more pessimistic picture. The funding rate for WIF stands at -0.00103%, highlighting a strong bearish sentiment among traders. This sentiment is further underscored by the long-to-short ratio of 0.944, indicating that more traders are betting against WIF than are betting on its ascent.
Recent statistics indicate that 51.44% of traders are holding short positions, with only 48.56% on the long side. This imbalance underscores the overall bearish outlook for the memecoin as traders brace for potential losses.
Given these market conditions, WIF is under increasing pressure to recover its earlier gains. The coming days will prove critical as investors weigh their options and the asset’s ability to maintain its position. With multiple indicators signaling caution, the future trajectory of Dogwifhat remains uncertain.