In the current bearish market sentiment, Solana-based Dogwifhat (WIF) is poised for a potential price correction in the coming days. On September 11, 2024, WIF experienced a price drop of over 8% and is now treading at a crucial support level. Key on-chain metrics, including WIF’s long/short ratio, OI-weighted funding rates, and future open interest, are all signaling bearish trends.
WIF Price Performance
As of writing, WIF is trading near $1.53, showing a significant price drop of over 8% in the last 24 hours. Despite this, its trading volume has increased by 10% during the same period, indicating higher participation from traders and investors. This suggests that while the price has fallen, there is still considerable interest in trading WIF.
Dogwifhat (WIF) Technical Analysis and Upcoming Levels
According to expert technical analysis, WIF is currently in a bearish phase, trading below the 200 Exponential Moving Average (EMA) on a four-hour time frame. It is at a critical support level of $1.516. If WIF fails to hold this level and closes a four-hour candle below $1.5, there is a high possibility that its price could decline by 12%, reaching the $1.3 level in the coming days.
Bearish On-chain Metrics
The bearish outlook for WIF is further corroborated by several on-chain metrics. Coinglass’s data reveals that the WIF Long/Short ratio currently stands at 0.927, suggesting a bearish market sentiment. A long/short ratio below 1 typically indicates a bearish outlook. Additionally, the WIF OI-weighted funding rate is -0.0097%, reinforcing the bearish sentiment.
Furthermore, WIF’s future open interest has declined by 10%. This indicates that traders are either closing their positions or have been liquidated due to the recent price drop, showing hesitancy in building new positions under the current market conditions.
Whales Scoop Up WIF Despite Bearish Sentiment
Despite the prevailing bearish sentiment, large investors, commonly referred to as whales, appear to be showing interest in WIF. On-chain analytics firm Lookonchain reports that two whales have accumulated a significant 20.58 million WIF tokens, worth $33.35 million, from Binance and Bybit in the past two weeks. This accumulation suggests that while short-term traders may be bearish, long-term investors see potential value in WIF at its current price levels.
Market Outlook and Future Predictions
In conclusion, while Dogwifhat (WIF) is currently experiencing a bearish phase with potential for further price declines, the increased trading volume and whale accumulation indicate underlying market interest. Investors should closely monitor key support levels and on-chain metrics to navigate this volatile period. Whether WIF can stabilize and potentially rebound will depend on its ability to hold crucial support levels and the broader market sentiment in the coming days.
