- The cryptocurrency market has exhibited extreme volatility recently, with a notable weekly decline.
- Bitcoin’s drop has had a ripple effect across the market, significantly impacting major altcoins.
- Notably, Dogwifhat (WIF) has seen a major decline, prompting bearish predictions from analysts.
Cryptocurrency News: WIF Faces Major Setback Amidst Dropping Open Interest
Dogwifhat (WIF) Sees 35% Decline on Weekly Charts
Over the past week, Dogwifhat (WIF) has faced a significant decline of 35%, contributing to a broader market downturn affecting all major cryptocurrencies. Bitcoin’s 9.84% drop to $60,780 has catalyzed widespread sell-offs, with Ethereum experiencing a 9.36% decline and Solana dropping by 21.09% to $141. This market turbulence has positioned WIF as one of the most adversely affected cryptocurrencies during this period.
Bearish Sentiment Among Analysts
Amid this decline, market sentiment surrounding WIF remains predominantly bearish. Analysts like Rehan Rao have expressed pessimistic projections, predicting further price drops. For example, Rao noted on X that “Dogwifhat (WIF) might drop to $1” due to significant market downturns and substantial whale activity, referencing a recent selling spree of 14.53 million WIF tokens. Analysts suggest monitoring key levels at $1.58 and $1.76, with a potential further decline to as low as $0.90.
Impact of Low Open Interest and High Liquidations
One driver of WIF’s decline is the decreasing open interest and rising long position liquidations. Coinglass data reveals that WIF’s open interest dropped from $385.98 million to $239.2 million within a week, indicating that investors are closing their positions rapidly without entering new ones. Additionally, LookonChain reported significant whale activity, with accounts selling off 14.53 million WIF tokens collectively worth $24 million. Concurrently, liquidation for long positions surged from $176,000 to $2.85 million over the same period, forcing investors to sell at a loss due to a lack of conviction to hold their positions.
Current Market Indicators
As of the latest data, WIF is trading at $1.55 after an 8.84% decline on daily charts, coupled with a 32.93% decrease in trading volume to $353.5 million over the past 24 hours. Technical indicators strengthen bearish sentiment: the Relative Vigor Index (RVGI) sits below zero at -0.3794, corroborating a downtrend driven by strong selling pressure. The Awesome Oscillator (AO) also remains below zero at -0.244, signaling weak short-term momentum compared to long-term trends. The Moving Average Convergence Divergence (MACD) further confirms this bearish condition, currently positioned below zero at -0.109.
Conclusion
In summary, Dogwifhat (WIF) is grappling with significant bearish momentum amidst a volatile market. With a steep decline in open interest and heightened liquidations, coupled with pessimistic market projections, WIF is poised for further declines. Investors should monitor the critical support level at $0.50 closely, as a break below this could push WIF towards new lows. Conversely, a rebound could signify a potential recovery, though the prevailing sentiment suggests caution.
