- dogwifhat formed a death cross on its one-day chart, suggesting a continuation of bearish trends.
- Despite this bearish sign, 83% of traders on Binance are long traders, betting on an uptrend.
dogwifhat [WIF] was among the top performers in the cryptocurrency market in 2024. During the year, the memecoin rallied by more than 1,000%. However, the trend weakened in December after the price dropped by 42% during the month.
At press time, WIF was trading at $1.77 after a 4% drop in 24 hours. The continued decline has led to a “death cross” appearing on the memecoin’s one-day chart.
Analyzing dogwifhat’s death cross
WIF’s “death cross” emerged after the 50-day Exponential Moving Average (EMA) at $2.50 fell below the 200-day EMA at $2.55.
This indicator suggests that dogwifhat could be entering a long-term bearish trend that could push the price lower.
Source: TradingView
WIF’s death cross has formed above the current price, suggesting traders may have already priced in the bearish momentum. However, if the memecoin fails to maintain support at $1.72, a decline to the 1.618 Fibonacci level at $0.31 is likely.
The Relative Strength Index (RSI) shows a surge in sell-side pressure, driving the downtrend. The RSI has dropped to 32, nearing oversold levels, and has been forming lower lows, indicating that buying pressure is insufficient to counter the selling pressure.
An oversold RSI usually precedes a short-term price correction to the upside. However, if buyers remain hesitant, WIF could consolidate at the current range.
Long/Short Ratio shows a bullish bias
Data from Coinglass shows that on the Binance exchange, there is a significantly higher number of long traders than short traders. In fact, 83% of traders on the exchange have opened long positions on WIF, which is the highest percentage in nearly a month.
Source: Coinglass
Given that funding rates have also remained positive, long traders are willing to pay a fee to maintain their positions.
While traders are bullish about a trend reversal, many long positions could backfire. If a sudden price drop occurs, it could trigger a surge in liquidations. This would, in turn, push WIF prices lower.
Can WIF reclaim its spot as a top Solana memecoin?
The drop in dogwifhat price has seen its market capitalization drop to $1.8 billion. It now ranks as the fourth-largest memecoin on Solana after being outperformed by BONK [BONK], ai16z [AI16Z], and Pudgy Penguins [PENGU)].
Read dogwifhat’s [WIF] Price Prediction 2024–2025
For WIF to reclaim its top position, it needs to rally and outperform the three top-ranking Solana memecoins.
This rally will depend on positive market sentiment and conviction among traders.
