- SHIB and WIF were part of the cryptocurrencies with a high social trend.
- Though most traders showed bearish sentiment, metrics signaled a rebound.
Memecoins Shiba Inu [SHIB] and dogwifhat [WIF] are two cryptocurrencies showing signs of heading back to the moon after Bitcoin’s [BTC] market disruption on the 5th of March. Before BTC hit $69,000, both SHIB and WIF were having a good time.
For instance, WIF’s price jumped 7x within 30 days. SHIB, which has been in oblivion for some time, suddenly woke up and almost tripled its value within days.
However, the volatility caused by Bitcoin’s all-time high pressed a reset button, and prices plunged with both memecoins affected.
Attention is not always optimism
Fast forward to the 7th of March, AMBCrypto observed that things might return in favor of WIF and SHIB. According to Santiment’s trending data, many traders have these cryptocurrencies on their radar.
Source: X
However, on-chain data showed that most conversations about the tokens were bearish. One reason for this was that traders believed Shiba Inu and dogwifhat had breached a psychological resistance which could suggest a negative outlook.
But sometimes, a widespread bearish sentiment could act as fuel for recovery. Thus, the prices of SHIB and WIF might rebound and go on a “hated rally.”
At press time, SHIB has lost 14.05% of its value in the last 24 hours. WIF, on the other hand, plunged by 12.06% within the same timeframe.
Like the prices, AMBCrypto’s findings showed that the volume also dropped. At press time, WIF’s volume was 877.31 million. For SHIB, its on-chain volume slid to 5.65 billion.
Source: Santiment
The memes are ready to bounce back
When the volume decreases alongside the price, it means that the downward trend is getting weak. Therefore, mild buying pressure could trigger a significant bounce. For WIF, the price could head back above $2 within a few days.
In SHIB’s case, the potential to retest $0.000045 might have become higher.
Recently, AMBCrypto reported how Shiba Inu’s price action helped its market cap into the top ten. Likewise, the market cap of WIF also crossed $2 billion at one point.
The increase was proof that traders engaged the cryptocurrencies in transactions and the price increases did not come out of thin air.
A look at WIF’s Open Interest revealed that the value decreased by 17.31% in the last 24 hours. The OI is the total value of unsettled contracts in the derivatives market.
Therefore, the decline implies that net positioning has been decreasing. On SHIB’s end, the Open Interest declined by 31.76%, indicating that traders are avoiding the token’s volatility so as not to get liquidated.
Realistic or not, here’s WIF’s market cap in SHIB terms
In addition, this decline implies that sellers are the aggressive ones. Concerning the price action, the large Open Interest could dump WIF and SHIB into their underlying support.
However, a pump into the overhead resistance might be the catalyst that drives a rally for the memecoins.
