Recently, the crypto market witnessed a notable price drop for dogwifhat (WIF), a widely recognized meme token, which saw a 32% fall from its peak value of $3.28. Concurrently, Bitcoin (BTC) also faced a downturn, shedding 5.9% in value within 24 hours, signaling a potential continuation of losses into the following week. Investors and market spectators are closely monitoring the support levels to gauge the future trajectory of these digital assets.
Market Sentiment Swings for WIF
Enthusiasts and supporters of WIF are rallying to uphold the crucial $2 support level, despite the prevailing negative market momentum and sentiment. Maintaining a bullish market structure, WIF’s recent low point was at $2.049. Analysis suggests that the token might be testing the 78.6% Fibonacci retracement level at $2.17 to preserve this low. If WIF’s price plunges below $2.05, this could signify a shift to a bearish market structure, as suggested by the 4-hour chart.
The Relative Strength Index (RSI) has descended below the neutral 50 mark, hinting at an intensifying downward momentum. Similarly, the On-Balance Volume (OBV) indicator has been on a decline over the past two days, further adding to bearish concerns.
Analysis and Predictions Amid Market Shifts
Crypto analysts speculate that WIF could experience another upward bounce from the $2 support zone. However, if bearish trends solidify, $2 and $2.4 may emerge as significant resistance levels. The market has observed a sharp drop in open interest from $364 million to $227 million within 48 hours, paralleling the 32% price plunge, indicating that the downtrend has affected speculative interests as well.
Despite the downturn, participants in the futures market are showing caution in establishing long positions, while spot market traders are reluctant to sell off their WIF holdings. The Spot Cumulative Volume Delta (CVD) has seen a marginal decrease but has generally been on an upward climb since March 17. This could strengthen the position of WIF bulls to maintain the $2 support, especially if Bitcoin’s price finds stability.