Dogwifhat Price Prediction As 8% Tumble In Open Interest Spells WIF Crash To $1.5
Dogwifhat price prediction: WIF holders might be considering cutting their losses as WIF slides further below the $2 critical level. According to CoinMarketCap data, losses have been burgeoning in the last 24 hours, culminating in a noticeable market cap drop to $1.93 billion.
Despite the correction to $1.95 on Wednesday, the Solana meme coin experiences an uptick in the trading volume to $394 million. This implies that traders are still interested in the token, however, shorts are overpowering the longs.
Dogwifhat Price Prediction: Will WIF Revisit $1.5 Support
There have been at least $1.84 million liquidations of WIF in the last 24 hours based on data from Coinglass. The lion’s share of them approximately $1.62 were accounted for by longs, with shorts taking up the rest, at least $220,000.
The face value of this data reveals bulls continue to suffer as dogwifhat corrects, extending the losses in June into July. Should the downtrend stretch below $1.9 support, WIF could enter into a full-blown sell-off, possibly diving to $1.5.
Dogwifhat’s short-term trend may continue downwards further cementing fears of a crash to $1.5 due to the subsequent drop in the futures market open interest by 7.78% to $270 million.
The associated funding rate has been falling since from a weighted average of 0.0126% in May to 0.007%. Most liquidations occurred on Binance, the largest cryptocurrency exchange followed by Bybit.
Assessing WIF’s Short-term Technical Structure
Dogwifhat is dealing with a sharp increase in sell-side pressure. Its position below two key Exponential Moving Averages (EMAs); the 20-day and 50-day adds pressure on support areas while increasing the risk of further losses.
Traders yet to short WIF might be watching out for another confirmation of the downtrend from the Moving Average Convergence Divergence (MACD) indicator.
A sell signal will materialize as the blue MACD line crosses below the red signal line. Red histograms below the neutral area will reinforce the bearish grip, encouraging traders to short WIF, thus contributing to the sell-off eyeing $1.5 support.
A recent death cross pattern could be another factor propelling dogwifhat down the rabbit hole. This pattern formed when the 20-day EMA flipped below the 50-day EMA validating the bearish bases.
Although the Relative Strength Index (RSI) had signaled a trend reversal toward the end of June, the downturn this week threatens to give back all the gains made after WIF rebounded from $1.5 support.
Another rebound is anticipated from the same area with resistance at $2 likely to slow down the recovery momentum. Breaching this level might ignite FOMO among investors riding the meme coin buzz.
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