Cryptocurrency investors continue to show intense interest in meme coins as in previous periods. However, not all of them benefit from this interest. Especially due to the fluctuations in BTC prices, some experience excessive sell-offs. For one of the popular altcoins, the latest drop signal might indicate a new dip warning.
Should You Buy Dogwifhat (WIF)?
Reaching an all-time high of $4.85 in March, WIF Coin was closely supported in futures trading. Nowadays, the situation is the opposite as the size of open positions decreases, we see the price weakening. An increase in open interest (OI) indicates strong demand for the token and strong capital inflow.
If investors reduce their positions in futures trading, it means a decline in liquidity and a drop in the spot price. When OI and price increase together, it results in something similar to the ATH journey of WIF Coin in March.
As you can see, WIF Coin open interest is $122.3 million, the lowest level in three months. The last time it dropped to these levels was on April 30. BTC price attempts below $67,000, the potential news triggered by tomorrow’s ETH ETF listing, and so on, could provide short-term support for bears.
WIF Coin Price Prediction
For WIF Coin, which is struggling to rise above $3, investor sentiment is also negative. This confirms that the rise will not be so easy. On the daily chart, we see that the rise that started on July 12 is losing strength, and with closures below $2.83 and $2.76, things could get even more difficult.
RSI has dropped to 65, confirming the weakening investor interest here as well. If RSI falls to the neutral zone and below, the price is likely to move to $2.47 and below. On the other hand, if EMA20 rises above EMA50, a golden cross will form, opposite to the death cross on June 10, and we will see a new upward wave targeting $2.78 to $3.09.
For now, short-term signals support the decline. Here, the performance of BTC and ETH prices will be decisive in major movements over the next few days. If the pair manages to stay strong and the ETF launch triggers a rise, a positive scenario could also work for WIF Coin.
