On November 13, the number of active addresses of Dogwifhat (WIF) increased to 17,000. However, at the time of writing, this number has decreased by nearly five times, indicating that interest in this meme coin has declined.
This decline also coincides with the WIF price dropping from $4.20. Below is a detailed analysis of how the decline in active addresses may affect the value of the meme coin in the short term.
Dogwifhat network activity declines
The WIF price rose above $4 on the same day that the number of active addresses reached the highest level since March 14. This increase showed that user participation is an important factor in the price performance of the meme coin. Currently, the daily active addresses of WIF for the meme coin on Solana have dropped to 3,692, indicating a significant decline in wallet activity compared to just a week ago. This decline suggests that interest in coin-related transactions is gradually waning.
History shows that a decline in active addresses is often an indicator of a price decline, often signaling a decrease in momentum and the potential for price weakness in the future. Therefore, it is not surprising that the WIF price was unable to maintain the $4 support level and is currently trading at $3.27.
Daily active addresses of Dogwifhat. Source: SantimentAnother indicator that suggests WIF may struggle to quickly recover to $4 is the Weighted sentiment. This index measures the market participants' perception of a token. When this index is positive, it indicates that most online comments about a project are positive. Conversely, if the index is negative, it means that the average comments about the asset are negative.
In the case of WIF, it is the latter. If this persists, the value of this Solana-based meme coin may drop below $3.27 in the short term.
Weighted sentiment of Dogwifhat. Source: SantimentWIF Price Prediction: Below $3
From a technical perspective, the daily chart shows that the Awesome Oscillator (AO) indicator has displayed red histogram bars. AO is a technical indicator that compares historical price fluctuations with recent fluctuations to measure momentum. When this index is positive, the momentum is increasing. But when it is negative, it is decreasing. In this case, the index is positive, but since the histogram is red, it indicates that the increasing momentum is gradually declining.
Daily analysis of Dogwifhat. Source: TradingViewIf this continues, WIF could drop to $2.69. Conversely, if the momentum returns to an increase, this prediction may not occur. Instead, WIF could rise to $4.79.
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