Solana-Based Dogwifhat (WIF) Poised for a Potential Price Correction in the Coming Days

In the current bearish market sentiment, Solana-based Dogwifhat (WIF) is poised for a potential price correction in the coming days.

Solana (SOL)-based Dogwifhat (WIF) price is set for a potential price correction in the upcoming trading sessions. On September 11, 2024, WIF price dropped over 8% and is now at a crucial level. But the on-chain metrics like WIF’s long/short ratio, WIF OI-weighted funding rates, and future open interest are showing bearish signals.

WIF Price Performance

Currently, WIF price is trading around $1.53 and has seen a price drop of over 8% in the last 24 hours. On the other hand, its trading volume has increased by 10% in the same time frame, showing higher participation from traders and investors even with the price drop.

Dogwifhat (WIF) Technical Analysis and Upcoming Levels

According to technical analysis by a crypto expert, WIF is bearish and trading below the 200 Exponential Moving Average (EMA) on a four-hour time frame. Also, it is now at a crucial support level of $1.516.

If this level fails to hold and closes a four-hour candle below the $1.5 level, there is a high chance WIF price could drop by 12% and reach the $1.3 level in the upcoming trading sessions.

Bearish On-chain Metrics

WIF’s bearish outlook is supported further by the on-chain metrics. Coinglass’ WIF Long/Short ratio is currently at 0.927, which indicates bearish market sentiment. According to the data, a long/short ratio below 1 indicates bearish sentiment and vice-versa. Meanwhile, the WIF OI-weighted funding rate is -0.0097%, which also indicates bearishness.

Moreover, its future open interest has also declined by 10%, indicating traders are either closing their positions or have been liquidated due to the recent price drop, and are currently hesitant to build new positions.

Whales Buy WIF Despite Bearish Sentiment

Despite this bearish outlook, whales and investors seem to be showing interest in WIF, as it has seen a good price drop in recent times. According to on-chain analytic firm Lookonchain, two whales have accumulated a massive 20.58 million WIF tokens, valued at $33.35 million from Binance and Bybit in the past two weeks.

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