- WIF has witnessed a price drop amid the rally in the general market.
- Key indicators suggest that the share price could fall further.
The dog themed meme coin dogwifhat [WIF] has not seen a significant price rally over the past week, despite the general market rally during that period.
According to CoinMarketCapWIF was exchanging hands at $2.84 at the time of writing, witnessing a 2% decline over the past seven days. This has made it the only leading meme asset to fail to register price growth over the past week.
More losses ahead
As assessed on a daily chart, WIF’s key technical indicators pointed to the possibility of a continued price decline. First, at the time of writing, the meme asset is trading below its 20-day exponential moving average (EMA).
When an asset is trading below the 20-day EMA, it is considered a bearish signal because it means that the current price has fallen below the average price of the past 20 days. Market participants interpret it as a shift toward a coin sell-off.
The decline in demand for WIF among market participants is illustrated by the Relative Strength Index (RSI), which at the time of writing was below its neutral point at 49.47. This value shows that WIF traders favored token sell-off over accumulation.
Furthermore, WIF’s MACD line (blue) rested below the signal (orange) and zero lines.
When these lines are set up this way, the short-term moving average of the asset is below the long-term moving average. It is a bearish signal that confirms an ongoing downtrend.
WIF’s Parabolic SAR points confirmed the bearish trend and topped the price. They have been that way since May 13.
This indicator is used to identify potential trend directions and reversals. When the dotted lines are placed above the price of an asset, the market is said to be in decline.
It indicates that the price of the asset has fallen and the decline may continue.
Source: WIF/USDT on TradingView
A look at the token’s weighted sentiment lent credibility to the above position. At the time of writing it was -0.5, per Santiments facts.
Source: Santiment
Read dogwifhat’s [WIF] Price forecast 2024-25
When an asset registers negative weighted sentiment, it generally indicates a downward trend in investor confidence.
Poor sentiment often leads to payouts, as some investors may be tempted to sell their holdings due to a lack of confidence in the asset’s short-term price growth.