Dogwifhat (WIF) Confronts Selling Pressure: Can It Push Through?

dogwifhat (WIF), a Solana-based memecoin, posted losses of 25% over last week. Despite Bitcoin’s bullish tone after hitting the $61k mark, WIF continued to trade under bearish influence. It continued to plot the red painting on the chart.

As long-positioned holders kept selling their holdings, the memecoin continued encountering selling pressure. It remained at the top of the declining table.

This inability to cross the $2 mark has led the memecoin to fall below the key moving averages. This opened the door toward the risk of a new 52-week low ahead.

The token was heading towards its make-or-break pivot near $1.200, the lower trendline support.

However, this correction may offer a golden opportunity for those who missed the initial dip. As the memecoin inched closer to the $1 mark and looked oversold, an ideal bounce could be seen soon.

dogwifhat (WIF) Looks Bearish: Further Slippages Imminent?

The daily chart reflected a sustained bearish rally, and the memecoin capped inside the falling channel. With the lower low formations, the token persisted in trading downwards. It lost over 60% of its gains in the past three months.

WIF was trading flat at $1.43 at press time. This was accompanied by a negative change of over 0.07% in the last 24 hours.

The token’s Relative Strength Index (RSI) remained in the oversold region, at 35, reflecting sustained selling pressure. @Traderkoala, in his tweet, projected that WIF reached its demand area and may find support there.

$WIF pic.twitter.com/ix95G2JOGi

— Trader Koala (@trader_koala) August 16, 2024

In the same manner, the MACD indicator plotted the red bars on the histogram and showed signs of underperformance.

Social Dominance and Sentiment Outlook

Amid the sustained bearish pressure, WIF investors remained cautious and negative belief for the memecoin. The Weighted sentiment curve fell below the zero line, reflecting a negative outlook.

Moreover, the social dominance data went lower and approached the ground, noted at 0.09%. It conveyed a severe decline in the media buzz for the memecoin.

The decline in open interest and the price drop hinted that long-term position holders indulged in covering their profits. They did not want to hold their gains due to uncertainty in the market, signaling a negative sentiment.

Notably, the Futures OI shed over 1.20% to $188.17 Million, reflecting long unwinding activity in the past 24 hours.

Moreover, the sharp surge in the liquidations means that the buyers are in tough situations and are trying to secure their gains.

Total Liquidations Data Overview

Adding to the bearish outlook, there has been skewed liquidity in the futures market. Meanwhile, the longs were suffering heavily from bearish pressure.

Over the last 24 hours, the long liquidations were noted at $315.32k, while the short liquidations were noted at $90.90k.

Liquidation Data | Source: Coinglass

Such a huge amount of long positions being liquidated puts tremendous bearish pressure on WIF.

If the token continues to trade with a bearish bias, it may break the immediate support zone of $1.30 and retest the next crucial support zone of $1.20. This would be followed by $1 in the short term.

Conversely, if it takes support near the $1.38 mark, it may gain strength and reach the upside resistance mark of $1.70. The $2 mark would follow this.

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