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The popular meme token dogwifhat (WIF), has recorded a 32% decline from its local high of $3.28. Bitcoin (BTC) also experienced a decline in the last 24 hours. At the time of writing, BTC had lost 5.9%, and further losses could occur in the coming week.
Resistance Level in WIF
WIF bulls are hoping to maintain the $2 support level. However, momentum and sentiment were not on their side. Will we see the meme token enter a downtrend? WIF continues its bullish market structure with a low swing to the $2.049 level. Fibonacci retracement levels could indicate that WIF is retesting the 78.6% retracement level at $2.17 to maintain this low swing.
A move below $2.05 in the cryptocurrency could turn the market structure bearish on the 4-hour chart. The Relative Strength Index (RSI) was already below the neutral 50, indicating that the downward momentum could be gaining strength. The OBV also showed a downward trend over the last two days.
Expert Opinion on WIF
Experts believe another bounce from the $2 support zone in the altcoin is possible. If the structure of the cryptocurrency shows a bearish trend, $2 and $2.4 could become key resistance levels. Open interest dropped from $364 million to $227 million in the last 48 hours. This significant retreat came along with a 32% price drop. The indicated situation shows that the downtrend has impacted speculators.
While investors in the futures market seem reluctant to take long positions, participants in the spot market appeared hesitant to sell WIF. Spot CVD registered a slight decline in the last few hours but has maintained an upward trend since March 17. This situation could increase the chances for WIF bulls to cling to the $2 support, provided Bitcoin stabilizes.
