JAKARTA - The crypto market has again experienced significant selling pressure, including for Solana-based meme coin Dogwifhat (WIF). In recent days, WIF has faced a price drop of more than 8%, sparking concern among investors.
Based on the latest data, there is a high possibility that the WIF price will decline further by up to 10%, with the crucial support level at 1.52 US Dollars (Rp23,426).
According to on-chain data, traders' sentiments towards WIF have turned bearish. This is indicated by WIF's long/short ratio which is at 0.87, the lowest since August 2024. The ratio below 1 shows the majority of traders are taking short positions, meaning they anticipate further price drops.
In the last 24 hours, 53.4% of major WIF traders hold short positions, while another 46.6% hold long positions. In addition, open interest in WIF Futures fell 10%, signaling that traders tend to close positions or hesitate to open new positions amid current market uncertainty.
Data from Coininglass shows that the main liquidation level for WIF is in the range of 1.52 US Dollars (Rp23,426) at the bottom and 1.637 US Dollars (Rp25,229) at the top. If the price drops to the level of 1.52 US Dollars, it is estimated that 1.36 million US Dollars (Rp20.9 billion) long positions will be liquidated. On the contrary, if the price rises to 1.637 US Dollars, about 6.13 million US Dollars (Rp94.4 billion) short positions are potentially liquidated.
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However, with bearish market sentiment, short sellers believe that the WIF price will not reach the level of 1.637 US Dollars. This indicates that selling pressure still dominates these assets, with a potential significant price drop in the near future.
As of this article written, WIF was trading at the level of 1.54 US Dollars (Rp23,734), down more than 8% in the last 24 hours. WIF trading volume also decreased by 40% over the same period, signaling lower trading participation as prices decreased.
Technically, WIF is currently under Exponential Moving Average (EMA) 200 on a daily graph, which is a bearish signal. The coin is also moving in an accreting channel pattern, with prices towards lower bounds of that pattern, adding to the pressure on the prospects for further dips.
Based on current historical price analysis and technical patterns, it is likely that WIF could experience a price drop of 10%, towards the level of 1.43 US Dollars (Rp22,039). This bearish outlook will remain valid as long as the WIF price is trading below the level of 1.70 US Dollars (Rp26,200). If the price succeeds to rise above that level, this downward prediction may be canceled.
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