In the current bearish market sentiment, Solana-based Dogwifhat (WIF) is poised for a possible price correction in the coming days. On September 11, 2024, WIF experienced a price drop of more than 8% and is now at a crucial level. However, on-chain metrics such as WIF’s long/short ratio, WIF OI-weighted funding rates, and future open interest are showing bearish signals.
WIF Price Performance
At the time of writing, WIF is trading around $1.53 and has experienced a price drop of over 8% in the past 24 hours. Meanwhile, its trading volume has increased by 10% in the same period, indicating higher participation from traders and investors despite the price drop.
Dogwifhat (WIF) Technical Analysis and Upcoming Levels
According to expert technical analysis, WIF appears bearish and is trading below the 200 Exponential Moving Average (EMA) on a four-hour time frame. Moreover, it is currently at a crucial support level of $1,516.
If this level fails to hold and the four-hour candle closes below the $1.5 level, there is a high probability of a 12% drop in the WIF price to the $1.3 level in the coming days.
Bearish On-Chain Metrics
WIF’s bearish outlook is further supported by on-chain metrics. Coinglass’ WIF Long/Short ratio currently stands at 0.927, indicating bearish market sentiment. According to the data, a long/short ratio below 1 indicates bearish sentiment and vice versa. Meanwhile, the WIF OI-weighted funding rate is -0.0097%, further indicating bearishness.
Furthermore, the future open interest has decreased by 10%. This indicates that traders are closing or liquidating their positions due to the recent price drop and are currently hesitant to build new positions.
Whales catch WIF despite pessimism
Despite this bearish outlook, whales and investors seem to be taking an interest in WIF, as its price has dropped significantly in recent days. According to on-chain analytics firm Lookonchain, two whales have accumulated a significant 20.58 million WIF tokens over the past two weeks, worth $33.35 million from Binance and Bybit.
