In recent days, the price of WIF has sharply declined, resulting in a notable increase in long liquidations.
Dogwifhat (WIF) has been a popular memecoin in the cryptocurrency sector for some time, backed by numerous investors, which had driven its substantial growth.
WIF Faces Significant Selling Pressure Amid Price Decline
In the past 24 hours, WIF has witnessed over $1 million worth of long positions being liquidated due to a sharp decline in its price. At the time of writing, the memecoin was trading at $2.59, reflecting a decrease of 7.26% from previous levels.
This drop is not an isolated event but part of a broader downtrend that has persisted since the beginning of May. Throughout this period, WIF has consistently formed lower lows and lower highs, indicating a bearish trajectory.
The Chaikin Money Flow (CMF), a gauge of money flow into or out of an asset, has also declined significantly, suggesting decreased buying interest in WIF. Similarly, the Relative Strength Index (RSI) has dropped, signaling diminished bullish momentum.
With ongoing selling pressure, WIF could potentially breach the support level around $2.4794 in the near future.
Source: Trading View
WIF Faces Increasing Bearish Sentiment Amid Competitors’ Gains
Following WIF’s recent price decline, traders have become increasingly skeptical. Coinglass data indicates that bearish sentiment has risen, with short positions now comprising 52% of recent trading activity.
The sentiment among traders appears to be worsening, as indicated by Santiment’s data showing a significant decrease in Social Volume related to WIF. This decline suggests a notable increase in negative commentary surrounding the token, potentially exacerbating selling pressure along with the decreasing Weighted Sentiment.
Source: Santiment
Adding to concerns, WIF’s competitors in the memecoin sector—such as DOGE, SHIB, and FLOKI—have experienced price surges over the past week. If these trends persist, WIF may face additional challenges in maintaining its market share and investor confidence.
Source: CoinMarketCap
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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