Down 70% in 2 months, WIF memecoin may be heading to the $1-level next!

WIF has fallen below its November lows
Down by nearly 70% in two months, dogwifhat is likely to touch $1 soon

The meme cryptocurrency Dogecoin [WIF] is persisting in its downward trend. This bearish movement has been ongoing since December 10th. The inability of buyers to protect the $2.51 level sparked a significant decline, revealing dwindling trust among those looking to buy.

The consistent poor showing of WIF was echoed in the broader meme coin market. Notably, Dogecoin, the largest meme coin in terms of market capitalization, has been finding it tough to bounce back. In contrast to other meme coins, the challenge for dog-WIF is not just about regaining ground but rather ensuring its continued existence.

November lows of WIF give way after three weeks of pressure

The chart analysis indicated a very fragile trend for WIF, as the gains achieved in November failed to be sustained. Just like Dogecoin, the rest of the market saw an uptrend in November, but unlike Dogecoin, WIF’s bulls couldn’t prevent a 50% pullback from being sold off.

As an analyst, I’ve observed a consistent selling pressure that’s been unfaltering in our market. Interestingly, within a month of the rally’s commencement, we witnessed a yield to the bears at the 78.6% retracement level. Over the past month, however, this level has not been revisited as a potential resistance point.

Over the last six weeks, the OBV has been steadily declining, potentially preparing to hit another new low. The RSI currently stands at 29.2, indicating that the market is oversold, but this doesn’t necessarily mean an immediate price increase is on the horizon.

In summary, sentiment analysis revealed a majority of pessimistic market players starting from late November. Additionally, the activity surrounding ‘dogwhathit’ on social media has significantly decreased as well.

Working in unison, they demonstrated that the prominence of WIF has diminished among the general population, while social media interactions surrounding it have remained unfavorable.

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

If a 123.6% extension occurs to the south at $1.18, this could serve as the next potential support level worth observing. A rebound from there towards the $1.55-$1.6 range, where the recent wave of selling activity intensified, might transpire. Keep an eye out for short trading opportunities in the upcoming days.

2025-01-14 00:07

November lows of WIF give way after three weeks of pressure

Read More