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Dogwifhat price may see 15% decline amid market activity

Dogwifhat price may see 15% decline amid market activity

Grafa2024/10/01 02:00
By: Liezl Gambe
SOL+1.35%WIF-1.25%

Dogwifhat (WIF), a meme coin on the Solana blockchain, has experienced a 42% price increase over the past week, but current market activity suggests a potential 15% correction.

The rise in speculative interest, indicated by an increase in Open Interest (OI) to $322.12 million, raises concerns about a possible downturn.

Historically, significant increases in OI have preceded price drops for WIF.

In May, OI reached $485 million, leading to a price decline from $3.83 to $2.68.

A similar pattern occurred in July when OI spiked to $350 million, followed by a decrease in price.

With OI currently at $322.12 million, market analysts suggest a possible 15% drop, bringing the price down to $2.01.

It shows high liquidity concentrations at $2.25, $2.10, and $1.95.

These areas, known as magnetic zones, could influence price movement if momentum weakens.

From a technical perspective, WIF attempted to surpass $2.48 but fell back to $2.38.

Resistance at $2.85 presents a challenge, and the Relative Strength Index (RSI), a momentum indicator, shows that WIF is currently in overbought territory.

This could contribute to a downward shift, with a potential drop below $2.25 and possibly down to $2.01.

However, if buying interest increases, WIF may see a rebound, potentially pushing the price past the $2.85 resistance level and closer to $3.

Market analysts suggest monitoring both speculative activity and technical indicators closely, as WIF’s price direction in the short term remains uncertain, with the possibility of both downward corrections and potential rebounds.

At the time of reporting, the Dogwifhat price was $2.51.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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