Dogwifhat (WIF), a popular Solana-based memecoin, is currently at a pivotal point near a critical support level after experiencing a significant rally. According to CoinMarketCap, WIF recently saw an increase of over 75%, but it has struggled to maintain this upward momentum. As of press time, WIF was trading near $0.559, having dropped by 5.5% in the past 24 hours. This decline has caused fear among traders and investors, leading to reduced participation.
Additionally, during the same period, WIF recorded a 40% drop in trading volume, which, combined with the price decrease, suggests weak bearish momentum. AMBCrypto’s analysis indicates that if WIF fails to hold its key support level of $0.545, it could experience a 25% drop, potentially reaching $0.41 in the coming days. Conversely, if WIF holds above this support level, it may regain upside momentum.
On-chain metrics also point to bearish sentiment. WIF’s Open Interest (OI)-weighted funding rate is near -0.00103%, reflecting strong bearish sentiment as more traders are betting against the memecoin. Furthermore, 51.44% of WIF traders globally are short, while 48.56% are long.
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