Dogwifhat (WIF) Turns Bearish as Bitcoin (BTC) Breaches Crucial Support Level

Dogwifhat (WIF), the popular Solana-based meme coin has turned bearish as Bitcoin (BTC), the world's largest cryptocurrency breached its crucial support

Solana-based meme coin Dogwifhat (WIF) has seen a bearish outlook, as Bitcoin (BTC) trades below a crucial support level, shifting sentiment across the cryptocurrency market towards a downtrend.

Dogwifhat Technical Analysis: Bearish Trend, Key Levels

As per expert technical analysis, WIF has turned bearish, having breached a crucial support level at $2.10 and poised to close a daily candle below it. Considering the recent price action and historical momentum, if the meme coin closes below that support, we can expect a significant 35% price drop in the upcoming days.

On the daily time frame, WIF trades below the 200 Exponential Moving Average (EMA), indicating a bearish thesis. However, this bearish outlook will be confirmed only if the meme coin closes the daily candle below the $1.97 level, or else the thesis may fail.

Dogwifhat Bearish Outlook Confirmed

Complementing the technical analysis, on-chain metrics further support a bearish outlook for WIF. According to on-chain analytics firm Coinglass, the WIF long/short ratio currently stands at 0.88, indicating a strong bearish sentiment among traders.

Furthermore, its open interest has dropped by 7.9% over the past 24 hours, as the price decline prompts traders to liquidate their positions and traders show hesitation in building new longs.

However, the falling open interest and a long/short ratio below 1 indicate weak bearish sentiment, as traders hold shorts but no significant new shorts are forming.

Latest Price Action in Focus

At press time, WIF trades around $1.98 and has seen a price drop of over 6.9% in the past 24 hours. During the same period, its trading volume has increased by 13%, indicating participation from traders and investors compared to the previous day.

The above is the detailed content of Dogwifhat (WIF) Turns Bearish as Bitcoin (BTC) Breaches Crucial Support Level. For more information, please follow other related articles on the PHP Chinese website!