dogwifhat remains bearish: When will WIF find a new support level?

• WIF declined with 12.7% in 24 hrs and 19.2% in seven days.
• Metrics indicated that investors were closing long positions without opening new short positions. 

dogwifhat [WIF], the Solana [SOL]-based memecoin, has had a 12.7% decline in the last 24 hrs. In the last seven days, WIF has reported a 19.2% decline.

With the price decline, the market cap has fallen by 12.43% in the last 24 hrs to $2.1B. However, WIF’s trading volume has surged by 69.96% in 24 hrs to $496 M with a circulating supply of 998M.

At press time, WIF was trading at $2.12, which is a continued negative trend over the last few weeks.

Source: TradingView

AMBcrypto’s analysis indicated that WIF has been experiencing a downtrend in the last two days. On the 16th of June, WIF tried to reverse the trend after weeks of sideways trading.

However, at press time, the attempts failed, and the downtrend continued. Thus, during this strong downtrend, the price declined by 50.88% to $2.11 from a high of $4.05.

Source: TradingView

Looking further, the RSI indicated a further bullish trend as it was nearing the oversold zone at 34. Equally, the RSI was crossing below its MA, which was a strong indicator of a bearish momentum.

Since the 5th of June, RSI-based MA has continually indicated a bearish trend, which at 41 will require a structure and support change for pattern reversal.

Source: Santiment

WIF: Pessimistic market sentiment 

Equally, according to Santiment, WIF has continuously reported a declining open interest in USD per exchange. At press time, the Open Interest was $135 M, a reduction from $180M on the 10th of June.

Declining Open Interest showed declining interest in WIF, as traders were avoiding new positions. This indicated that traders were indifferent and lacking confidence in the current trend, thus closing their positions.

Traders, in this sense, were closing long positions and not opening new short positions, resulting in the price decline.

Source: Coinglass

Based on Coinglass data, WIF’s volume-weighted Funding Rate has been in continuous decline. From the 15th of June, volume-weighted Funding Rate has been in free fall, slightly dipping into negative territory.

The continued decline in volume-weighted Funding Rate indicated bearish sentiment, as traders were paying to hold short positions.

Will the downtrend persist?

Various metrics showed a continued decline as the market sentiment was overly pessimistic at press time.

Read dogwifhat’s [WIF] Price Prediction 2024-25

WIF was reporting a lower Funding Rate as investors were uncertain about the trend and were thus failing to open new positions. If the negative market sentiment continues, WIF prices will fall to $1.79.

In a bullish scenario and pattern reversal, WIF will attempt to reach $4.06 with a new support level of around $2.3.