The value of the dog-themed meme coin dogwifhat (WIF) has declined significantly in the past few days. Exchanging hands at $1.90 at press time, its price has plummeted by 26% in the past week. 

Readings from its key technical indicators highlight the surge in WIF’s selling pressure over the past week. This trend puts the meme coin at risk of further decline. 

Dogwifhat Bulls Under Pressure to Defend Support

WIF fell below the lower line of its ascending channel on July 23, and its price has since declined by 24%. Generally, a break below this line indicates that the bulls have failed to defend an asset’s support level. It happens when the uptrend weakens and selling pressure gains momentum. A fall below support confirms that the market is now in a decline.

While its price declines, WIF’s daily trading volume has surged in the last week. According to Santiment, it has skyrocketed by 127% over the past seven days. 

The opposite movements of WIF’s price and trading volume create a negative divergence, confirming the increased selling activity among the meme coin holders. 

A high trading volume during a price drop suggests that many traders are actively selling the asset, primarily due to changes in market sentiment. At press time, WIF’s weighted sentiment is below zero at -0.19, confirming the bearish bias toward the meme coin.

Read more: 5 Best Dogwifhat (WIF) Wallets To Consider In 2024

An asset’s weighted sentiment metric gauges the market’s overall mood towards it. When this metric falls below zero, it indicates that most social media discussions are driven by negative emotions such as fear, uncertainty, and doubt. This is often an indicator of a potential price decline or a confirmation of an existing one.

WIF Price Prediction: Brace For Further Devaluation

Readings from WIF’s key momentum indicators show a significant decline in the demand for the meme coin among market participants. As of this writing, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) are 38.24 and 32.47, respectively. 

The RSI and MFI are momentum indicators measuring overbought or oversold market conditions. With WIF’s RSI at 38.45 and MFI at 32.81, these values indicate significant selling pressure and suggest that the token may be approaching oversold conditions.

If the downtrend persists, the meme coin’s price may drop to $1.48.

Read more: Dogwifhat (WIF) Price Prediction 2024/2025/2030

On the contrary, if the trend changes direction and market sentiment shifts from bearish to bullish, the token may exchange hands above $2 at $2.28.