WIF (dogwifhat) Bulls and Bears Battle for Supremacy as Short Sellers Increase Their Positions

WIF traded at $2.57 at press time after a 4.7% gain in 24 hours. WIF, the largest meme coin on Solana [SOL], has been under bearish pressure as it was down by 2.5% in the last seven days.

Solana [SOL] meme coin, dogwifhat [WIF], encountered a 4.7% gain over 24 hours on 23 August, trading at $2.57 at press time. However, the meme coin has been under bearish pressure as it was down by 2.5% in the last seven days.

WIF’s recent gains come amid a recovery across the Solana meme coin ecosystem. Data from CoinGecko showed that the market capitalization for SOL-based meme coins surged by nearly 7% in 24 hours.

Following these gains, WIF showed signs of a reversal from the bearish trend. On the one-day chart, WIF’s Stochastic Relative Strength Index (RSI) dropped to the oversold level of 11.

This suggested that WIF’s bearish trends were due to selling activity as traders aimed to minimize their losses. The Stoch RSI also converged with the signal line from below, indicating that a reversal might be starting.

However, the Moving Average Convergence Divergence (MACD) showed a bearish outlook as it was below the signal line and the histogram bars were negative. This indicated that bears were attempting to gain control of the price action.

If WIF succumbed to the bearish trends, it could drop to find support at the 0.236 Fibonacci level ($2.2).

However, if sellers were exhausted and buyers stepped in, WIF could make a strong rebound past $3 to the 1.618 Fib level at $3.50.

dogwifhat short sellers are increasing their positions

WIF saw a sudden increase in short positions, which was observed in the long/short ratio that dropped to 0.90, marking its lowest level in 30 days. 52% of derivative traders opened short positions on WIF, while 47% opened long positions.

The increase in WIF short sellers was further indicated by its funding rate. This metric recently surged to a multi-week high of 0.01%, suggesting that long traders were paying a higher fee to maintain their positions.

However, at press time, the funding rate dropped to 0.0054%, indicating that long traders were closing their positions.

A surge in short positions increases the likelihood of a short squeeze. If WIF continues its uptrend, these short sellers could be forced to buy, which will further support an uptrend.

The likelihood of a continued uptrend is also indicated by the positive crowd sentiment around WIF, according to Market Prophit. Positive sentiment could lead to buying activity and the bearish trends could weaken.

The above is the detailed content of WIF (dogwifhat) Bulls and Bears Battle for Supremacy as Short Sellers Increase Their Positions. For more information, please follow other related articles on the PHP Chinese website!