- WIF has lost a significant percentage of its investors, forcing the asset to trend even lower.
- WIF is one support level away from hitting a new monthly low in the market.
dogwifhat [WIF] has continued to decline over the past 24 hours, with the asset recording a 23% loss, bringing its weekly loss to 24%. The sentiment indicates that investors are backing out of the market, and selling volume is increasing.
Technical analysis shows that WIF has one more support level before it could take a further decline.
Investors are selling and backing out
A recent analysis shows that investor sentiment reflects ongoing sell-offs, as holders continue to offload their WIF positions.
Notably, a CoinGlass metric shows that about 15% of investors voted to sell WIF. They no longer believe in its potential.
Since the 28th of May, investors have been leaving the market for four days straight. This confirms that selling pressure is increasing.
However, dogwifhat’s decline over the past 24 hours has also been influenced by broader market turmoil and a surge in selling volume.
At the time of writing, trading volume has increased by 38.16%. When price drops and volume rises, it implies more selling activity is taking place, and WIF could slide lower.
Market analysis could be worse for WIF
Market analysis shows that dogwifhat is in a tight spot, with the asset just one support level away from trading back to its May low.
Analysis indicates that WIF currently has one support level left, precisely at $0.709, which the price is now approaching.
Source: TradingView
Typically, this level should provide a rebound, assuming the market’s selling momentum has weakened and buyers regain confidence in the asset.
If this level fails, WIF will likely trend back to its previous low of $0.523, a level last reached on the 6th of May —the month’s low.
The question remains: will WIF rebound from this support level or trend lower?
Which path will WIF take?
Analysis by AMBCrypto found that despite the high selling pressure, especially in the past 24 hours, the market appears exhausted.
Currently, the exhaustion phase has shown up in both the Money Flow Index (MFI) and the Relative Strength Index (RSI).
The Money Flow Index (MFI), which tracks the inflow and outflow of liquidity into an asset, sat below 20, at 4.09, at press time—indicating the market was oversold.
Source: TradingView
The Relative Strength Index (RSI) tells a similar story, having dropped below its oversold region and now trading below the 30 mark.
At the time of analysis, RSI stood at 19.9, suggesting more sellers may begin buying as the market hits exhaustion.
Historically, such a point has often catalyzed a price rally. Interestingly, there is no definitive timeline for when buying may resume, but spot traders are likely to play a major role in supporting a rally.
