Dogwifhat (WIF) Turns Bearish as Bitcoin Breaches Crucial Support Level; 35% Price Decline Incoming?

Dogwifhat Technical Analysis and Upcoming Levels According to expert technical analysis, WIF has turned bearish as it breached its crucial support level of $2.10 and is about to close a daily candle below it.

Solana (SOL)-based meme coin Dogwifhat (WIF) price breached a crucial support level on Monday as Bitcoin (BTC) failed to hold a key price floor, leading to a bearish shift in the sentiment across the cryptocurrency landscape.

Following this development, WIF’s technical analysis revealed a bearish outlook with a high probability of a 35% price decline if it fails to close above a key level. At press time, WIF’s on-chain metrics indicated a bearish sentiment with weak bearish momentum.

Dogwifhat Technical Analysis and Upcoming Levels

Expert technical analysis showed that WIF breached a crucial support level at $2.10 with a possibility of closing a daily candle below it. This scenario could lead to a significant price decline, as recent price action and historical momentum suggest a 35% drop if the meme coin closes below that support.

Currently, WIF’s price is trading below the 200 Exponential Moving Average (EMA) on the daily time frame, indicating a downtrend. However, this bearish thesis will only be valid if the meme coin closes its daily candle below the $1.97 level, or else the downtrend may be invalidated.

WIF’s Bearish Confirmation

On-chain metrics, in addition to technical analysis, further supported WIF’s negative outlook. According to Coinglass, a platform for on-chain analytics, the WIF long/short ratio was 0.88 at the time, indicating a strong bearish sentiment among traders.

Moreover, its open interest dropped by 7.9% over the past 24 hours, suggesting traders’ positions were being liquidated as the price declined and traders were hesitant to build new positions.

However, the decreasing open interest and a long/short ratio below 1 indicated a weak bearish sentiment, as traders were present on the short side, but no significant new short positions were being built.

Current Price Momentum

At press time, WIF’s price was around $1.98, showing a 6.9% decline over the past 24 hours. During this period, its trading volume increased by 13%, indicating traders’ and investors’ participation compared to the previous day.

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