Traders Withdraw Over $40 Million as Dogwifhat (WIF) Price Falls 10%

08/12/2024 14:30

WIF price has decreased over the past day and is attempting to recover. However, the uncertainty among investors could be a challenge.

Dogwifhat (WIF) price is bearing the brunt of the bearish cues stemming from Bitcoin’s recent decline below $60,000.

The traders changed their tone just as quickly as the price did, which is evident in the massive withdrawal over the last 24 hours.

Dogwifhat is Missing Support

Volatility is an old friend of the crypto market, and so is panic selling, even during the slightest declines. The WIF price’s correction had a similar impact. As the meme coin witnessed a 10% drop in a day, the investors’ investment noted a similar outcome.

The Open Interest for the meme coin has experienced a notable decline of $43 million within a single day. This drop highlights a growing sense of pessimism among investors and traders regarding the coin’s future performance.

Adding to the bearish sentiment, the Relative Strength Index (RSI) appears to be struggling within the negative territory. Despite the recent recovery in WIF price, the RSI has not managed to cross the neutral line, suggesting continued weakness in the market.

This technical indicator often gauges momentum and market sentiment, and its current position reinforces the prevailing bearish outlook. If buying momentum remains just as weak as it currently is, recovery will become significantly more difficult.

WIF Price Prediction: It’s a Long Way Up

The WIF price at $1.64 noted a 51% increase in merely 72 hours last week, half of which was wiped out over the weekend. The meme coin is now looking to bounce back from the next crucial support of $1.52.

Reclaiming $1.83 is key for the WIF price to climb back above the resistance of $2.01. In the past, this price level has emerged as a crucial support level for the meme coin. A similar outcome could help WIF jump towards $2.36.

However, if WIF fails to secure $1.83 as support, a decline to $1.52 is likely again. This time, the meme coin could note significantly larger outflows, which might make recovery challenging.

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Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...

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