On November 13, the number of active addresses of Dogwifhat (WIF) increased to 17K. However, as of now, that number has dropped nearly fivefold, indicating a decline in interest in this Meme Coin.
This drop also coincided with the WIF price falling from $4.20. Below is a detailed analysis of how a drop in active addresses could affect Meme Coin’s value in the short term.
Dogwifhat Network Activity Declines
WIF’s price surged past $4 on the same day that the number of active addresses reached its highest level since March 14. This surge suggests that user participation is crucial to bullish performance by Meme Coin.
Currently, the number of daily active addresses for WIF on the Solana network has dropped to 3,692, showing a sharp decline in wallet activity compared to just a week ago. This implies a decreasing interest in transactions related to this coin.
Historically, such a decline in active addresses is a bearish indicator, often signaling shrinking momentum and the possibility of a price drop. So, it is no surprise that WIF price could not maintain the $4 support level and is currently trading at $3.27.
Another indicator that WIF may not quickly recover to $4 is weighted market sentiment. This index measures the perception of market participants towards a Token.
When the index is positive, Sentiment Weighting implies that most online comments about a project are positive. Conversely, if the index is negative, it means the average reviews about the property are negative.
In the case of WIF, the situation is the same. If this continues, the value of Meme Coin on the Solana platform could drop below $3.27 in the short term.
WIF Price Forecast: Under 3 USD
From a technical perspective, the daily chart shows that the Awesome Oscillator (AO) has shown red histogram bars. AO is a technical oscillator that compares historical price movements with recent movements to measure momentum.
When this index is positive, momentum is bullish. But when it is negative, it is decreasing. In this case, the index is positive, but because the histogram is red, it shows that the bullish momentum is fading.
If this continues, WIF could drop to $2.69. Conversely, if momentum becomes bullish, this prediction may not come to pass. Instead, WIF could shoot up to $4.79.
