Memecoins are experiencing a significant decline on weekly charts. WIF has declined by 4.54% over the past day.
- WIF declined by 4.54% in 24 hours. As memecoins bleed, dogwifhat may decline to $1.98 before buyers attempt another uptrend.
Memecoins have seen a massive rally over the past month. However, the past week has experienced massive losses for this sector. Amidst this, dogwifhat [WIF] has experienced massive decline on daily charts.
At press time, dogwifhat was trading at $2.24. This marked a 2.41% decline on weekly charts, with an extension of the bearish trend by 4.54% on daily charts.
Prior to this, WIF had been on an upward trajectory, hiking by 47.25% over the past month.
The latest price action raises questions about dogwifhat’s future trajectory.
Prevailing market sentiment
According to AMBCrypto’s analysis, WIF has retraced to form a bearish engulfing pattern after surging 48 hours ago. This signals possible short-term selling pressure.
As such, it could result in further market correction before attempting another uptrend.
In context, a bearish engulfing pattern usually forms after a sustained uptrend which has been experienced on monthly charts.
It signals that buyers are losing control and sellers are taking over, potentially leading to a reversal in the price direction.
Therefore, since WIF has continually faced rejection at $2.5, it indicates sellers are dominating the market.
If the rejection persists, WIF could drop below $2, where there was buying opportunity for buyers to reenter the market and attempt to break higher.
What WIF charts indicate
As observed above, dogwifhat has experienced a strong downward momentum over the past week. As such, the prevailing market condition shows WIF could face further decline on price charts.
Source: TradingView
For starters, dogwifhat’s Directional Movement Index shows a strong downtrend, with the negative index at 26.5 sitting above positive at 22.
This signaled that sellers were in control, and the price was experiencing strong downward momentum.
The fact that DMI- is above DMI+ suggested that the market trend is bearish and in the process of turning bearish. This was further confirmed by a rising ADX, signaling that the bearish trend was gaining momentum.
Source: Santiment
Additionally, WIF’s Open Interest in USD per Exchange has been declining over the past week, dropping from $242.9 million to $187.9 million at press time.
Such a decline indicated that investors were not opening new positions while closing existing ones. This indicated that investors lacked confidence in memecoin’s prospects.
Source: Coinglass
Finally, WIF’s volume has reduced from $2.9 billion to $995.9 million. This signaled that buyers were losing strength, meaning the rally could be losing momentum.
Such a significant volume drop suggested that sellers were taking control, and a pullback was imminent.
Therefore, the current market conditions could set WIF for a further decline in its price charts. As such, the memecoin will find its next support at $1.98 where there’s a buying opportunity to reenter the market.
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