Solana-based meme coin dogwifhat (WIF) has skilled a pointy downturn over the previous week. It has shed 33% of its worth throughout that interval and presently trades at a February 2024 low.
On-chain and technical indicators affirm the weakening demand for the meme coin, suggesting its decline could proceed within the brief time period.
WIF’s Declining Demand Indicators Bearish Outlook
An evaluation of the WIF/USD one-day chart reveals that the token’s On-Steadiness-Quantity (OBV), a key indicator of shopping for and promoting stress, has continued to drop, reflecting diminishing demand for the meme coin. At press time, it’s at -398.94 million, falling by 285% in simply seven days.
A falling OBV like this means that promoting stress outweighs shopping for stress. It means extra merchants are offloading the asset than accumulating it.
When an asset’s OBV falls whereas its value declines, it reinforces bearish sentiment and the chance of additional losses. This implies weakening demand for WIF and indicators a possible downtrend or continuation of its present value drop.
Moreover, WIF’s open curiosity reinforces this bearish outlook. It has steadily declined because the begin of February, plunging by 42%.
Open Curiosity refers back to the whole variety of excellent futures or choices contracts that haven’t been settled. When it drops alongside an asset’s value decline, merchants are closing their positions moderately than opening new ones. This displays weakening market participation and may sign that the downtrend could proceed except new curiosity emerges.
WIF Worth Prediction: Extra Declines Forward?
Readings from WIF’s Superior Oscillator (AO) affirm the waning demand for the altcoin. This indicator posts pink downward-facing histogram bars as of this writing, reflecting the excessive promoting stress. Its worth is -0.60.
The Superior Oscillator indicator measures market momentum by evaluating the current 5-period shifting common to the longer 34-period shifting common. When it posts pink downward-facing histogram bars, it signifies weakening bullish momentum or strengthening bearish stress, suggesting a possible continuation of a downtrend.
If WIF’s downtrend continues, its value might plunge to $0.55, representing a 30% decline from its present worth.
Nonetheless, if the meme coin sees a resurgence in demand, it might propel its value previous the resistance at $0.92 and towards $1.89.
Disclaimer
In keeping with the Belief Undertaking pointers, this value evaluation article is for informational functions solely and shouldn’t be thought-about monetary or funding recommendation. BeInCrypto is dedicated to correct, unbiased reporting, however market circumstances are topic to alter with out discover. All the time conduct your individual analysis and seek the advice of with knowledgeable earlier than making any monetary choices. Please be aware that our Phrases and Circumstances, Privateness Coverage, and Disclaimers have been up to date.