One of the newest dog-themed meme coins, dogwifhat (WIF), has experienced a noticeable drop in value over the past few days. As of the time of writing, its price is trading at $1.85, having declined by 29% over the past week. Technical indicators showed that WIF faced intense selling pressure last week. Additionally, the current price trend suggests that the meme coin is at risk of further declines.
Dogwifhat Comments
WIF price fell below the lower line of its ascending channel, considered support, on July 23, and since then, the price has dropped by 29%. Generally, falling below this line indicates that the bulls failed to defend the mentioned support. This situation signals a decline in the upward trend and shows that selling pressure is increasing.
A drop below the support level also indicates a price decline. While the price was falling, WIF’s daily trading volume increased last week. According to data provided by Santiment, trading volume increased by 127% over the past seven days.
The negative divergence seen in WIF’s price and trading volume may reveal how dominant the increasing selling activity is among meme coin holders.
Generally, it is known that the increase in trading volume during price declines reflects the short sales existing in the market. As of the time of writing, WIF’s weighted sentiment was in the negative zone at -0.19, highlighting another data point indicating a bearish trend for the meme coin.
How Much Will WIF Be Worth?
In the analysis of WIF’s fundamental indicators, it was observed that demand for the meme coin among market participants had decreased. As of the time of writing, the token‘s Relative Strength Index (RSI) and Money Flow Index (MFI) were at 38.24 and 32.47, respectively.
Briefly speaking about RSI and MFI, they are commonly used indicators that measure overbought or oversold market conditions.
If the downtrend in WIF’s price continues, the meme coin’s price could drop to $1.48. Conversely, if the trend reverses and market sentiment improves, the token could rise above $2 again, trading at $2.28.
