The Solana-based meme coin
Dogwifhat (WIF) has decreased by 7% in the last 24 hours, currently trading at $3.54. It is the second largest daily decliner, after
Goatseus Maximus (GOAT), which has dropped 15% in the same period.
With increasing selling pressure and a more pessimistic market sentiment, WIF is at risk of further decline, potentially pushing the price below $3.
Dogwifhat faces downward price pressure
BeInCrypto's analysis of the WIF/USD 4-hour chart shows a negative trend for this Altcoin. The negative Elder Ray Index indicates that the selling momentum currently outweighs the buying strength among market investors. At the time of writing, WIF's Elder Ray Index is -0.22.
The Elder Ray Index assesses the strength of the upward and downward pressure in the market. When it falls below 0, it indicates that the bears have overtaken the bulls, signaling a downward momentum. This suggests that the sellers are dominating the market, pushing the price lower. In such situations, traders consider a negative value as a warning of the potential continuation of the downtrend or selling pressure.
WIF's Elder Ray Index. Source:
TradingView
Additionally, WIF's Relative Strength Index (RSI) shows a decrease in buying pressure. RSI, which measures overbought and oversold conditions, ranges from 0 to 100. Readings above 70 indicate the asset is overbought and may need to correct, while values below 30 suggest it is oversold and may be due for a recovery. Currently, WIF's RSI is below the neutral level of 50, at 44.80, reflecting weakening bullish momentum.
WIF's RSI. Source:
TradingView
WIF Price Prediction: Sub-$3 levels possible
WIF is currently trading at $3.46, just above the $3.35 support level. If the downtrend continues, this meme coin is likely to test this support. A breach of $3.35 could lead to a further decline to $3, with the potential to drop to $2.57 if selling pressure increases.
WIF Price Analysis. Source:
TradingView
However, this bearish outlook could be reversed if WIF receives renewed demand, which could push the price up to $4.19.
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