The memecoin dogwifhat (WIF) has been facing selling pressure, resulting in a 25% loss over the past week. Despite Bitcoin’s bullish performance, WIF has struggled to break through the bearish influences and has continued to decline. This has prevented it from reaching the $2 mark and has put it at risk of reaching a new 52-week low.
However, the current correction in price may present an opportunity for those who missed the initial dip. As WIF approaches the $1 mark and becomes oversold, there is potential for a bounce back in price.
On the daily chart, WIF has been experiencing a sustained bearish rally and is trading within a falling channel. With lower lows forming, the token has been steadily declining and has lost over 60% of its gains in the past three months. At the time of writing, WIF is trading at $1.43 with a slight negative change in the last 24 hours.
Technical indicators such as the Relative Strength Index (RSI) and MACD suggest continued selling pressure and underperformance for WIF. The sentiment among investors is also negative, reflected in the weighted sentiment curve falling below the zero line. Additionally, social dominance data shows a decline in media buzz for the memecoin.
The decline in open interest and the decrease in price indicate that long-term holders are closing their positions, possibly due to market uncertainty. This further contributes to the negative sentiment surrounding WIF. In the futures market, long liquidations have been significant, adding to the bearish outlook.
If WIF continues on its bearish trajectory, it may break the immediate support zone of $1.30 and test the next crucial support zone of $1.20, followed by $1 in the short term. On the other hand, if it finds support near the $1.38 mark, it could gain strength and potentially reach the upside resistance levels of $1.70 and $2.