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Will dogwifhat crash to $1.25? Examining WIF’s future in a bearish market

2min Read

dogwifhat’s market structure was bearish and it saw a rejection from the 50% retracement level at $1.98.

Will dogwifhat crash to $1.25? Examining WIF's future in a bearish market

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  • WIF was the worst-performing meme token of the top five in the past week
  • The sentiment behind WIF was intensely bearish in the short-term

dogwifhat [WIF] was unable to scale past the psychological $2 level. Instead, the bulls were rebuffed from just beneath it a week ago, and the bearish outlook remained valid.

The quick gains of the past week were unsustainable.

The memecoin sector also posted double-digit percentage losses in the past seven days. WIF’s performance was the worst among the top five popular meme coins in this period.

Where is dogwifhat headed next?

WIF 1-day TradingView

Source: WIF/USDT on TradingView

In July, WIF made a bullish market structure break (green). It formed a local top at $2.895 and proceeded to fall to $1.07 as Bitcoin [BTC] crashed from $69k to $49k. WIF has not begun to recover from these losses.

Its market structure was bearish, and it also saw a rejection from the 50% retracement level at $1.98. It appeared likely that the Fib extension levels below $1 are the next targets.

The daily RSI was at 38 to reflect a firm downward momentum. The CMF’s reading of -0.14 indicated sizeable capital flows out of the dogwifhat market over the past week.

Bearish sentiment in the Futures market

dogwifhat Coinalyze

Source: Coinalyze

The data from the Futures market showed seller dominance. The Funding Rate was negative, indicating rampant short-selling. Also, the Open Interest has been in decline over the past week alongside the price.


Realistic or not, here’s WIF’s market cap in BTC’s terms


Together, they captured the market participants’ willingness to sell WIF. The spot CVD’s downtrend reinforced this perspective.

Hence, a move toward the local lows at $1.25 is likely to commence over the weekend.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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