The recent plunge in WIF’s price has left many wondering if the once-popular memecoin has completely lost its spark | Credit: Derek Fenech
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Key Takeaways
Despite hitting $4 in December, WIF’s price has fallen since February 2024.
The decline in the value of memecoin seems connected to the dwindling speculative activity around it.
Several indicators reveal high selling pressure, signifying that WIF’s downswing is not yet over.
Once the talk of the crypto market, Dogwifhat (WIF), a meme coin that gained massive traction in 2024 with the viral phrase “a dog with a pink hat,” has taken a sharp downturn.
After soaring to a market cap of $4.5 billion around March 2024, WIF has seen its price plummet to $0.79. This represents its lowest point since February 25, 2024. At one point, the token traded close to $5, but today, it’s a shadow of its former self.
With WIF’s price stuck in a downtrend, some traders believe its best days are behind it. But is there still hope for a short-term rebound, or is WIF destined for further decline?
One crucial metric that helped WIF reach $4.85 in March 2024 was its Open Interest (OI), which measures speculative activity around a cryptocurrency.
A high OI indicates fresh capital flowing into the market. This influx of liquidity implies strong bullish sentiment and confidence in the asset’s potential upside. Therefore, when the price increases alongside the OI, it indicates that, the value might continue to jump.
For instance, when WIF’s price jumped from $1.91 to $4.19 in November last year, the OI climbed from $300 million to over $600 million.
But as of this writing, the OI has plummeted to $157.58 million. The decline in the Open Interest indicates that net positioning around WIF has decreased.
As such, it is likely the memecoin will experience a further decline unless it attracts substantial capital into the derivatives market.
WIF Price Analysis
On the daily chart, the decline has driven the token to slide below the 100-period Exponential Moving Average (EMA). Historically, when the price falls below the EMA, it indicates that the crypto is likely to undergo correction.
As seen below, the price continued to fall whenever WIF dropped below this indicator. Meanwhile, when it rises above it, the value trades higher.
Coupled with the 100 EMA, the Cumulative Volume Delta (CVD), which is the difference between the volume bought and sold, is negative.
This indicates that WIF is still facing selling pressure. If this continues, the meme coin’s value might continue to fall, especially as it failed to hold support at $1.50.
Not a Temporary Setback
Further evaluation of the WIF/USD chart shows that, like the price, the On-Balance Volume (OBV) has reached its lowest in nearly a year.
The OBV looks at the trading volume around an asset and uses it to predict the price movement. The higher the OBV, the higher the price increases.
However, in this case, the indicator validated the intense selling pressure that WIF continues to face. Should the memecoin struggle to notch an increase in buying pressure, then the price might drop to $0.63.
On the flip side, with WIF oversold, the trend might reverse to the upside if the token sees a rise in accumulation. In that situation, WIF’s price could climb to $2.25.
In addition, if demand for the token surges much higher, it could rise as high as $4 and invalidate the bearish bias.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
