Long

Reserve

bullish

Dogwifhat price analysis reveals a 2% drop on Sunday, hastily approaching the multi-month support of $1.5. Amid the broader market correction, most major altcoins, especially the meme cryptocurrency sector, witnessed significant corrections due to their volatile nature. The WIF price at the $1.5 floor indicates pivotal momentum for a potential rebound or accelerated correction ahead.
Also Read: <a href="https://coingape.com/markets/bitcoin-crashes-amid-recession-fears-should-you-buy-the-dips/" rel="noopener noreferrer nofollow">Bitcoin Crashes Recession Fears Grip Markets: Should You Buy The Dips?</a>
<h2 id="span-style-font-weight-400-dogwifhat-price-analysis-key-support-level-in-jeopardy-span">Dogwifhat Price Analysis: Key Support Level in Jeopardy</h2>
The cryptocurrency market recorded a notable downturn in the past two weeks. This selling pressure was initiated with Bitcoin’s reversal from the $70000 level and escalated mid-week amid geopolitical tension in the Middle East and recession fear.
The <a href="https://coingape.com/meme-coin/" rel="noopener noreferrer nofollow">meme coin</a> sector faced a significant impact as it rushed with market sentiment and speculative trading. The Dogwifhat price analysis shows a correction from $2.9 high to $1.57, registering a 46% loss within a fortnight. Consecutively, the market cap fell to $1.58 Billion.
Mirroring the price correction, the Dogwifhat coin has seen a notable decline in Open Interest since late July. Data from Coinglass shows that WIF’s Open Interest plummeted from $389 million to $239 billion, a decrease of 38%. This significant drop in OI indicates a reduced commitment or market liquidity for WIF, possibly pointing to waning investor confidence to bolster the price drop.
<figure id="attachment_210942" aria-describedby="caption-attachment-210942" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-210942" src="https://coingape.com/wp-content/uploads/2024/08/image_2024-08-04_15-22-14.png" alt="WIF Futures Open Interest" width="1539" height="413" srcset="https://coingape.com/wp-content/uploads/2024/08/image_2024-08-04_15-22-14.png 1539w, https://coingape.com/wp-content/uploads/2024/08/image_2024-08-04_15-22-14-300x81.png 300w, https://coingape.com/wp-content/uploads/2024/08/image_2024-08-04_15-22-14-1224x328.png 1224w, https://coingape.com/wp-content/uploads/2024/08/image_2024-08-04_15-22-14-768x206.png 768w, https://coingape.com/wp-content/uploads/2024/08/image_2024-08-04_15-22-14-1536x412.png 1536w, https://coingape.com/wp-content/uploads/2024/08/image_2024-08-04_15-22-14-150x40.png 150w" sizes="(max-width: 1539px) 100vw, 1539px">
 <figcaption id="caption-attachment-210942" class="wp-caption-text">
 WIF Futures Open Interest| Coinglass
 </figcaption>
</figure>
The daily chart shows WIF’s price trading below the descending <a href="https://coingape.com/education/exponential-moving-average-how-to-leverage-it-in-crypto-market/" rel="noopener noreferrer nofollow">Exponential Moving Averages</a> (20, 50, and 100), highlighting a bearish sentiment.
If selling pressure persists, the coin sellers could pierce $1.5 support and trigger a 27% drop to seek support of $1.1.
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<figure style="width: 100%" class="wp-caption alignnone"><img decoding="async" src="https://s3.tradingview.com/snapshots/z/zuD2TCoX.png" alt="Dogwifhat Price Analysis" width="1946" height="893">
 <figcaption class="wp-caption-text">
 WIF|USDT – 1D Chart
 </figcaption>
</figure>
However, the $1.1 support level aligns with the support trendline of&nbsp;<a href="https://coingape.com/education/falling-wedge-pattern-what-to-do-if-it-appears-on-a-crypto-chart/" target="_blank" rel="noopener noreferrer nofollow">a falling wedge pattern</a>, which may encourage buyers and revive bullish momentum.&nbsp;The chart setup features two converging trendlines that indicate waning bearish momentum over time.
Moreover, the momentum indicator RSI is nearing the oversold territory, which could entice buyers looking for a discounted asset.
A potential rebound could bolster the Dogwifhat price to challenge the overhead trendline at $2.7, registering a potential gain of over 60%.&nbsp;
The post <a href="https://coingape.com/markets/dogwifhat-price-analysis-open-interest-40-long-short/" rel="noopener noreferrer nofollow">Dogwifhat Price Analysis As Open Interest Falls 40%; Go Long Or Short?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Dogwifhat Price Analysis As Open Interest Falls 40%; Go Long Or Short?

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