Dogwifhat Price Plummets As Open Interest Declines: Is It Time To Buy?

Dogwifhat Price, a Solana-based meme coin, has recently experienced a notable price decrease. This decline aligns with a broader market downturn and bearish outlook that can be seen across other cryptos like BTC, ETH, Solana and other top altcoins 

Dogwifhat Price Dips as Open Interest Slides

The recent Dogwifhat price correction coincides with the bearish trend in the WIF derivatives market. The Dogwifhat Open Interest dropped by 10% to $266 million over the past day. Despite the volume metric witnessing an impressive surge of 40% to $1.51 billion in the same period, indicating a downtrend is unlikely to continue.

Additionally, total liquidation in long positions amounts to $571,000, further highlighting the cautious sentiment prevailing in the market.

This disparity between increasing volume and declining open interest suggests a lack of confidence among traders, potentially indicating a looming market correction.

Navigating Through Market Volatility

Over the past 24 hours, the WIF price has experienced significant fluctuations. WIF recorded a low of $1.83 and a high of $2.04 during this period. As of the time of writing, the Dogwifaht hovered at $1.88, making a dip of 6 % during the European trading session.

Over the past month, the WIF price has declined by 16%, reflecting a significant downturn in its market performance. Additionally, over the past week, the cryptocurrency has seen a further decline of 27%, indicating a persistent downward trend and raising concerns among investors about its short-term stability.

The technical indicators on the 4-hour chart suggest a potential reversal for WIF/TetherUS. During press time, the Relative Strength Index (RSI) stands at 29 which is in oversold territory.  The Moving Average Convergence Divergence (MACD) indicates a weakening bearish trend.  The MACD line stands at -0.142, slightly above the signal line at -0.122. 

If bearish mounts more pressure on the asset, it could break below the support level of $1.80, triggering a potential decline towards the following significant levels at $1.70 and $1.50, indicating intense selling pressure. 

Can Dogwifhat Rebound from Recent Lows?

Most of the meme coins have seen a decrease over the past 24 hours. Dogecoin (DOGE) has declined by 3.3%, while Shiba Inu (SHIB) registered a drop of 3.2%. 

Pepe Coin (PEPE) decreased by 4.7%, and similarly, Bonk (BONK) and Floki (FLOKI) are down by 1.2% and 4.2%, respectively. This trend suggests a pulling back of investor interest in meme coins after recent market fluctuations.

On the upside, if bulls return, the Dogwifhat price could break the resistance level of $2.00, potentially climbing to $2.50 and even $3.00 in the next bullish run. This upward momentum might attract more buyers, leading to a potential rally as investor sentiment shifts towards optimism