Dogwifhat Price Analysis As Open Interest Falls 40%; Go Long Or Short?

Dogwifhat price analysis reveals a 2% drop on Sunday, hastily approaching the multi-month support of $1.5. Amid the broader market correction, most major altcoins, especially the meme cryptocurrency sector, witnessed significant corrections due to their volatile nature. The WIF price at the $1.5 floor indicates pivotal momentum for a potential rebound or accelerated correction ahead.

Also Read: Bitcoin Crashes Recession Fears Grip Markets: Should You Buy The Dips?

Dogwifhat Price Analysis: Key Support Level in Jeopardy

The cryptocurrency market recorded a notable downturn in the past two weeks. This selling pressure was initiated with Bitcoin’s reversal from the $70000 level and escalated mid-week amid geopolitical tension in the Middle East and recession fear.

The meme coin sector faced a significant impact as it rushed with market sentiment and speculative trading. The Dogwifhat price analysis shows a correction from $2.9 high to $1.57, registering a 46% loss within a fortnight. Consecutively, the market cap fell to $1.58 Billion.

Mirroring the price correction, the Dogwifhat coin has seen a notable decline in Open Interest since late July. Data from Coinglass shows that WIF’s Open Interest plummeted from $389 Million to $239 Million, a decrease of 38%. This significant drop in OI indicates a reduced commitment or market liquidity for WIF, possibly pointing to waning investor confidence to bolster the price drop.

The daily chart shows WIF’s price trading below the descending Exponential Moving Averages (20, 50, and 100), highlighting a bearish sentiment.

If selling pressure persists, the coin sellers could pierce $1.5 support and trigger a 27% drop to seek support of $1.1.

Also Read: Breaking: Bitcoin Reserve Bill Referred To Banking Committee in US

However, the $1.1 support level aligns with the support trendline of a falling wedge pattern, which may encourage buyers and revive bullish momentum. The chart setup features two converging trendlines that indicate waning bearish momentum over time.

Moreover, the momentum indicator RSI is nearing the oversold territory, which could entice buyers looking for a discounted asset.

A potential rebound could bolster the Dogwifhat price to challenge the overhead trendline at $2.7, registering a potential gain of over 60%. 

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