- Dogwifhat is trading at $2.27, down by more than 13%.
- The daily trading volume of the meme coin has increased by over 74%.
Ahead of the Christmas holidays, investors are taking profit, resulting in the crypto market encountering a bearish force. The market cap has plunged to $3.51 trillion. Notably, the Solana-based meme coin, Dogwifhat (WIF), chose to trade on the downside, as its 24-hour chart flashes a bearish signal.
WIF has recorded a steady drop of over 13% over the last 24 hours, falling back to the previous support zones. In the early hours, the meme coin has visited its daily high at $2.57. As the bears chose to rule the day, the lowest price was observed at $2.26.
WIF price chart (Source: CMC)
At the time of writing, WIF trades at $2.27, with its market cap reaching $2.27 billion. Meanwhile, the daily trading volume stands at around $968 million, after surging over 74.20%. In addition, the market has observed a $9.38 million Dogwifhat liquidation, as per Coinglass.
On the other hand, the meme coin has lost over 27.90% in the past seven days. WIF opened the week trading at $3.15. However, the volatile meme coin has consistently plummeted to the current level.
Can WIF Turn the Tide Against the Bears?
The technical indicators of WIF have illustrated the active downward pressure. Both the Moving Average Convergence Divergence (MACD) line and the signal line are stationed below the zero line, suggesting a bearish trend. The sellers in the market are dominant, with buyers being weak.
WIF chart (Source: TradingView)
It’s crucial to note the capital flow into the asset with the Chaikin Money Flow indicator. WIF’s CMF is found at -0.20, inferring the negative money flow, with more distribution than accumulation. The further the CMF moves below, the stronger the bearish sentiment and selling activity.
Moreover, the daily relative strength index (RSI) of WIF is positioned at 24.90, indicating the meme coin is oversold. Buyers might consider this as an opportunity to enter the market. The daily frame of Dogwifhat has placed the short-term 9-day MA below the long-term 21-day MA.
The meme coin’s four-hour price pattern highlights the sturdy bear hold. If Dogwifhat fails to surpass $2.33, the in-progress downtrend might deepen and test the nearby support at $2.24. A further breach and strong selling pressure could lead WIF to a possible decline to $2.18.
On the upside, if WIF’s bearish outlook reverses and regains the lost positive momentum, it could likely challenge the resistance at $2.36. A strong bullish breakout above this level might drive the meme coin to gain further, targeting $2.50 and possibly even $3.
Disclaimer: The opinion expressed in this article is solely the author’s. It does not represent any investment advice. TheNewsCrypto team encourages all to do their own research before investing.
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