Dogwifhat (WIF) Price Struggles to Regain Footing as Bitcoin Drops Below $60,000

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

The Dogwifhat (WIF) price is facing strong selling pressure as Bitcoin’s recent drop below $60,000 has sparked fear among investors.

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

Weakening Open Interest Hints At Pessimism

Volatility is an old friend of the crypto market, and so is panic selling, even during the slightest declines. The impact of the WIF price correction was also felt by investors, as the coin dropped 10% in a day.

The Open Interest for the meme coin experienced a significant decline of $43 million in a single day. This drop highlights a growing 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.

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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