WIF Price Plunges to Yearly Lows – Bearish Trend Ahead?
Solana-based Meme Coin Dogwifhat (WIF) has experienced a sharp decline over the past week. It accounts for 33% of its value during this period and is currently trading at its February 2024 lows.
On-chain and technical indicators confirm that demand for meme coins has weakened, suggesting that its decline may continue in the near term.
Wif’s demand signal reduces bearish outlook
Evaluate wif/usd The one-day chart shows that the balance of tokens (Obv) is a key indicator of buying and selling pressure, which has been declining, reflecting a decrease in demand For meme coins. At press time, it was -398.94 million, down 285% in just seven days.
Such a drop indicates that the pressure to sell is greater than the pressure to buy. This means that more traders are unloading assets than accumulated assets.
When the price of an asset falls while its price drops, it strengthens bearish sentiment and the possibility of further loss. This indicates that demand for WIF is weakened and the signal may decline or continue its existing price decline.
Furthermore, WIF’s open interest enhances this bearish outlook. It has been steadily declining since early February, down 42%.
Public interest refers to the total outstanding amount futures or an option contract that has not yet been resolved. When it drops as the asset’s price falls, traders are closing positions instead of opening new positions. This reflects a weakening of market participation and can indicate that the downward trend may continue unless new benefits appear.
WIF Price Forecast: Will there be more declines in the future?
WIF’s excellent oscillator (AO) readings confirm the reduced demand for Altcoin. The indicator, at the time of writing, published a red downward histogram bar, reflecting high sales pressure. Its value is -0.60.
Awesome Oscillator metrics measure market momentum by comparing the most recent 5-period moving average with the longer 34-period moving average. When it publishes a red downward histogram rod, it indicates bullish momentum or strengthens bearish pressure, indicating a potential downward trend.
If the downward trend of WIF continues, its price may drop to $0.55, while its current value is down 30%.
But if meme coins see a revival of demand, Can drive its price Over $0.92 and sells for $1.89.
Disclaimer
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