dogwifhat [WIF] sees $1M in long liquidations as price tumbles: What now?

WIF

As an experienced analyst, I’ve seen my fair share of market volatility and price movements in the cryptocurrency sector. WIF (Dogwifhat) has been a memecoin that has garnered significant attention and investment in recent times. However, its price action over the last few days has taken a turn for the worse.

For some time now, Dogecoin (WIF) has held the title of favorite meme token in the cryptocurrency market. Its popularity has been fueled by a significant following of investors, leading to substantial price increases.

Traders take a hit

Due to the volatile price movements in WIF lately, traders have taken substantial losses.

In the past 24 hours, long positions with a total value exceeding $1 million have been closed as a result of the substantial price drop experienced by WIF.

The price of the memecoin fell by 7.26% and was trading at $2.59 at the time of writing.

The price drop of WIF starting from May wasn’t just a brief setback but rather a significant part of an ongoing downward trend.

During this timeframe, the token exhibited numerous price dips that were not recovered by significant rises, suggesting a downward trend.

During this timeframe, the Chaikin Money Flow (CMF) saw a substantial decrease, indicating a diminished inflow of funds into the token.

Additionally, the Relative Strength Index (RSI) declined in tandem, signaling a significant weakening of the buying pressure surrounding WIF.

As a crypto investor, I’m closely monitoring WIF‘s price action and I believe that if the current selling pressure persists, we might see the price slip below the $2.4794 mark in the near future.

dogwifhat [WIF] sees $1M in long liquidations as price tumbles: What now?

Looking at the Social Volume

Because of the recent drop in prices, traders have become wary and more bears have entered the market, accounting for approximately 52% of short positions based on Coinglass’ data as analyzed by AMBCrypto.

The overall sentiment of the traders could further drive down WIF’s price going forward.

As a crypto investor, I’ve noticed that the social buzz surrounding WIF has taken a downturn based on Santiment’s recent analysis. This shift has been marked by an increase in the volume of negative remarks circulating about the token.

As a researcher studying market trends, I’ve observed that decreasing social volume and weighted sentiment can lead to substantial selling pressure.

dogwifhat [WIF] sees $1M in long liquidations as price tumbles: What now?

As a researcher studying the memecoin market, I can tell you that an unfortunate turn of events for holders of WIF could be the current state of the memecoin sector as a whole. Over the past week, some of WIF’s main competitors, such as DOGE, SHIB, and FLOKI, have experienced a significant price increase.

If this trend continues, WIF could lose significant market share.

2024-05-19 17:12

Traders take a hit

Looking at the Social Volume

Read More