Dogwifhat (WIF) Price Prediction: The Meme Coin Is in Danger

Just weeks after surpassing $3, the price of Dogwifhat (WIF) has plummeted, now down 50% from that peak. At press time, WIF trades at $1.56.

After a brief surge that saw Dogwifhat (WIF) price rally past the $3 mark, the meme coin has encountered a setback, losing nearly 50% of its value from the peak. At press time, WIF trades at $1.56, following a steep decline from its high.

While some investors may view this drop as an opportunity to buy the dip, a deeper analysis suggests that WIF’s price troubles could be far from over.

Dogwifhat Momentum Turns Bearish

A glance at WIF’s daily chart reveals that the Relative Strength Index (RSI) has dropped to 40.21. The RSI is a widely used technical indicator that measures momentum by analyzing the speed and magnitude of price changes.

A declining RSI indicates bearish trends, while a rising RSI suggests bullish strength. With WIF’s RSI currently trending down, the outlook appears to be bearish. If the RSI continues to decline, we can expect to see further decreases in the meme coin’s price.

Moreover, traders in the market seem to share a pessimistic sentiment. According to data from Coinglass, the WIF Long/Short ratio has fallen to 0.89. This ratio examines the positions of longs (buyers) and shorts (sellers) in the derivatives market.

A ratio above 1 suggests the dominance of long positions and implies that traders anticipate an increase in price. However, if the Long/Short ratio declines below 1, it indicates that shorts have the upper hand, and investors expect a decrease in price, as is the case with WIF.

RSI and Long/Short analysis together paint a картину of bearishness for WIF.

WIF Price Prediction: The Meme Coin Is in Danger

Moving on to the daily chart, we can observe that WIF’s decline was amplified following the formation of a bearish engulfing candle on August 11, which led to a 19.81% drop over four days.

A closer inspection reveals a crucial support level at $1.50. This support has previously triggered upward movements for WIF, making it critical for the coin’s short-term outlook.

A break below $1.50 would signal further trouble, potentially indicating a dip towards $1.25. Additionally, the Moving Average Convergence Divergence (MACD) indicator has turned negative.

Unlike the RSI, which focuses on price changes, the MACD uses the Exponential Moving Average (EMA) to assess market strength. Positive MACD values suggest bullish momentum, while negative values confirm bearish conditions.

For Dogwifhat, the MACD currently points to bearish conditions, implying that a recovery is not close at hand. This aligns with the possibility of a drop to $1.50 or even $1.25.

However, if bullish momentum returns and buying pressure intensifies, this bearish outlook could shift. In such a scenario, we might see WIF’s price rise to $1.76, with a potential surge up to $2.20.

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