The Memecoin Sector’s Downfall: Dogwifhat (WIF) Plunges Amidst Bearish Market Structure
The memecoin sector’s popularity has taken a toll on the cryptocurrency market, with Dogwifhat (WIF) experiencing significant losses due to its market structure. Despite the rejection of the 50% retracement level at $1.98, bears seem to be in charge.
The daily Relative Strength Index (RSI) is currently at 38, indicating strong downward momentum and capital outflows from the WIF market. WIF’s performance in the last week has resulted in significant percentage losses for this sector, which is vastly different from its previous performance of $2.895 in July.
The current market structure of Wif is unnervingly comparable to the Bitcoin crash that occurred almost two weeks ago, when the coin dropped to $1.07 and bitcoins fell from $69k to $49k. WIF’s price could potentially hit local lows of $1.25, with potential targets at Fib extension levels below $1 based on historical data.
Futures market data suggests that sellers are dominant, suggesting a bearish outlook with nested Funding Rate and declining Open Interest. WIF’s future looks increasingly bearable for traders, who predict a continued decline in coin prices.
The current mood is not limited to the coin, as the cryptocurrency market has also been affected by volatility. The flagship cryptocurrency, Bitcoin, has been under pressure in recent weeks and its failure to overtake $50k has caused a decline in investor confidence.
WIF’s price is currently below $2, but its potential targets at Fib extension levels below $1 are causing concern among investors. Despite the coin’s inability to break above the 50% retracement level at $1.98, bears will likely attempt to drive the price down local lows at around $1.00.
As a result, the outlook for Dogwifhat (WIF) is bearish, with the memecoin market experiencing significant losses in the past week. The market structure of the coin is showing signs of bearishness, and the Futures market data suggests that sellers are dominating. Investors should be cautious as WIF’s price continues to fall to local lows at $1.25.
For more insights and information on the cryptocurrency market, check out this article on CoinSeeks.com: “Crypto Market Analysis: Trends and Predictions”
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