The value of Dogwifhat (WIF) took a hit following Bitcoin’s fall below $60,000. The meme coin’s price tumbled 10% in a single day, prompting traders to withdraw over $40 million within 24 hours.
Investors Pull Out as WIF Loses Ground
The recent drop in WIF’s price triggered a wave of panic selling, a familiar reaction in the volatile crypto market. This downturn led to a significant decline in Open Interest, which dropped by $43 million in a day. This sharp decrease reflects growing pessimism among traders about WIF’s future performance.
Adding to the gloomy outlook, the Relative Strength Index (RSI) remains stuck in negative territory. Despite WIF’s recent price recovery, the RSI has struggled to move past the neutral line, signaling ongoing market weakness. Without a boost in buying momentum, WIF’s chances of a strong recovery remain slim.
Outlook for WIF: Tough Road Ahead
WIF saw a brief surge last week, reaching $1.64, marking a 51% increase in just 72 hours. However, half of those gains were wiped out over the weekend. The meme coin is now aiming to recover from the next crucial support level at $1.52.
For WIF to regain its footing, it needs to reclaim $1.83, which could pave the way for a climb above the $2.01 resistance level. In the past, this price point has acted as a strong support for WIF. A successful bounce could potentially push the coin towards $2.36.
However, if WIF fails to hold the $1.83 support, it may drop back to $1.52. In such a case, the meme coin could see larger outflows, making recovery even more challenging.
