Dogwifhat (WIF), one of the popular meme cryptocurrencies on the Solana (SOL) network, has seen a sharp drop in price, which is partly in line with the overall market sentiment.
Since peaking in April, WIF has fallen significantly, leaving traders who bought at the peak with significant losses. The cryptocurrency, which was trading at a high of nearly $5 in early April, has now fallen to around $1.40, a staggering drop of nearly 75%.
In this line the cryptanalyst CreditBullIn X’s August 4 post, he shared his thoughts on WIF’s current market position. According to CreditBullThe minimum reduction target has been achieved, but caution is still recommended.
It is noteworthy that after the formation of the triple top pattern – a bearish signal – the price continued its downward trajectory, breaking through key support levels.
Key points on the WIF chart include the triple top that indicated a likely reversal and the break of previous support levels around $2.37, confirming the bearish trend. The 100% target at $1.477 was reached, indicating that the predicted downside move has been realized.
Overall, the current sentiment around WIF is cautious. While some traders may view the current price as an opportunity to buy at a discount, the prevailing advice is to wait for a more stable base to form before taking any action. The potential for further decline remains, and premature entry could result in additional losses.
WIF Open Interest Falls
Indeed, the cautious approach to WIF has been seen in other on-chain metrics, such as data shared TOBTS indicates that since July 27, open interest in the meme coin has fallen by 28% to $252.5 million.
The platform noted that traders are expecting a retest of the critical $1.50 support level due to the ongoing correction. Investors remain wary of a quick rebound, with significant short and long positions at risk.
WIF Price Analysis
At press time, WIF was trading at $1.40, with a 24-hour loss of around 11%. Indeed, on the weekly timeframe, the losses are more pronounced, with the meme coin down more than 42%.
At the same time, if the bearish sentiment persists, WIF may fall below the important support level of $1.
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