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WIF witnessed a massive decline in price over the last few days, causing a surge in long liquidations.
Market sentiment fell, while other cryptocurrencies gained.
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.
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.
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.
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2024-05-19 17:12