- WIF’s Open Interest (OI)-weighted funding rate stood near -0.00103%, indicating strong bearish sentiment
- Data revealed that 51.44% of WIF traders globally were positioned short, while 48.56% were on the long side
Dogwifhat (WIF), the popular Solana-based memecoin, appeared to be struggling near a key support level after a notable upside rally. According to CoinMarketCap, while the memecoin recently saw an upside of over 75%, it failed to sustain it on the charts. In fact, it might be on the verge of a price crash now.
At press time, WIF was trading near $0.559 after having recorded a price decline of 5.5% over the past 24 hours. This price drop seemed to fuel fear among traders and investors, leading to lower participation.
That’s not all though as during the same period, the memecoin recorded a 40% drop in trading volume. This fall in trading volume, along with the price, hinted at weak bearish momentum in the asset.
Dogwifhat (WIF) price action & technical analysis
According to AMBCrypto’s analysis, WIF is currently at a make-or-break level. The daily chart revealed that if the prevailing market sentiment remains unchanged and the memecoin fails to hold its key support level of $0.545, it could shift WIF back towards the bearish side.
Source: TradingView
If WIF’s price breaches and closes a daily candle below the $0.545-level, it could drop by 25%, potentially hitting the $0.41-level in the coming days.
On the other hand, if the memecoin holds this support and stays above the $0.545-level, it still has a chance to gain upside momentum in the coming days.
At the time of writing, WIF’s Chaikin Money Flow (CMF) indicator was in positive territory, with a value of at +0.04. This alluded to strong buying pressure in the asset. However, this will only hold if the memecoin remains above the support level.
Bearish on-chain metrics
Despite the crypto’s unclear price action, on-chain analytics firm Coinglass seemed to be flashing a bearish signal. This indicated that WIF’s price may decline in the coming days.
At press time, WIF’s Open Interest (OI)-weighted funding rate stood near -0.00103%, indicating strong bearish sentiment as more traders seemed to be betting against the memecoin.
Source: Coinglass
This bearish outlook can be further confirmed by WIF’s long/short ratio, with the same having a value of 0.944. This reading signaled a dominance of short positions.
Additional data highlighted that 51.44% of WIF traders globally were positioned short, while 48.56% were on the long side.
Source: Coinglass
This metric clearly highlighted that traders’ outlook for the WIF memecoin is bearish, and it could soon record a price decline on the charts.