- WIF has recorded double-digit losses since March 18.
- The lack of sales volume in the spot market was encouraging for the upside.
Popular meme coin dogwifhat (WIF) has fallen 32% since hitting a local high of $3.28. Bitcoin (BTC) price has also fallen over the past 24 hours. BTC has lost 5.9% in this window at press time, and more losses could follow later this week.
WIF bulls will be hoping to defend the $2 support level. But momentum and sentiment were not on their side. Can we see memecoin trending downward?
The $3 support was broken earlier this week. Will $2 follow?
Source: WIF/USDT on TradingView
WIF maintains a bullish market structure with a swing low of $2.049, the higher low of the uptrend. Fibonacci retracement levels show that WIF has retested the 78.6% retracement level at $2.17, forming this swing low.
A move below $2.05 will reverse the market structure to bearish on the 4-hour chart. RSI is already below the neutral 50 level, indicating that bearish momentum is strengthening. OBV has also shown a downward trend over the past two days.
Another bounce is likely in the $2 support area. Even if they did that, the power of buyers was a problem in the short term. If the structure reverses bearishly, $2 and $2.4 will be the key resistance levels.
Spot selling pressure remains weak
Source: Coin Analysis
Open interest decreased from $364 million to $227 million in the last 48 hours. This massive plunge came with a 32% drop in prices. This showed that bearish sentiment had taken hold of speculators.
Realistic or not, WIF’s market cap in BTC terms is:
In the futures market, traders were reluctant to take long positions, while in the spot market, participants were reluctant to sell WIF. Spot CVD has maintained an upward trend since March 17, although it has fallen slightly in recent hours.
This makes it more likely that WIF bulls will maintain $2 support if Bitcoin can stabilize.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.