Why can Dogwifhat (WIF) fall below 3 USD?


Dogwifhat (WIF), a Meme Coin belonging to the Solana platform, has dropped 7% in the past 24 hours, currently trading at $3.54. It is ranked 2nd on the list of coins that fell the most today, behind Goatseus Maximus (GOAT), which fell 15% in the same period.

Increasing selling pressure and negative market sentiment are increasing the risk that WIF could fall further, pushing the price below the $3 mark.

Dogwifhat Facing Pressure to Reduce Prices

TinTucBitcoin’s review of the 4-hour WIF/USD chart shows a bearish trend for this altcoin. The Elder Ray Index has shown the superiority of bears over bulls. Currently, WIF’s Elder Ray index stands at -0.22.

The Elder-Ray Index evaluates the strength between buying and selling pressure in the market. When it falls below zero, it indicates bear dominance, as shown by the bearish momentum. This suggests that sellers are taking control of the market, pushing prices lower. In these situations, traders view the negative value as a warning of a possible continuation of the bearish trend or upcoming selling pressure.

WIF Elder Ray Index. Source: TradingView

In addition, WIF’s Relative Strength Index (RSI) also shows that buying pressure is decreasing. RSI measures overbought or oversold conditions, ranging from 0 to 100. Levels above 70 indicate the asset is overbought and may need a correction, while below 30 indicates oversold and a recovery is likely. .

Currently, WIF’s RSI is below the 50 level, at 44.80, reflecting weakening bullish momentum.

WIF RSI. Source: TradingView

WIF Price Forecast: Sub-$3 Level May Be Nearing

WIF is currently trading at $3.46, hovering just above the $3.35 support. If the current bearish momentum continues, this Meme Coin is likely to test this support level. A breach of $3.35 could lead to a deeper decline to $3, with the possibility of a further decline to $2.57 if selling pressure strengthens further.

WIF Price Analysis. Source: TradingView

However, this bearish view could be reversed if WIF records a strong increase in demand, which could push its price up to around $4.19.

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