Solana-based meme coin Dogwifhat (WIF) has dropped 7% in the past 24 hours, now trading at $3.54. It currently ranks as the second-largest loser of the day, behind Goatseus Maximus (GOAT), which has plummeted 15% during the same period.
With increasing selling pressure and growing bearish sentiment, WIF risks further declines that could push its price below the $3 threshold.
Dogwifhat Faces Bearish Pressure
BeInCrypto’s assessment of the WIF/USD four-hour chart reveals the bearish bias against the altcoin. The negative reading on its Elder Ray Index indicates that bearish momentum currently outweighs bullish strength among market participants. As of this writing, WIF’s Elder Ray Index stands at -0.22.
The Elder-Ray Index assesses the strength of bullish and bearish pressures in the market. When it falls below zero, it indicates that bear power has overtaken bull power, signifying bearish momentum. This suggests that sellers are dominating the market, pushing prices lower. In such scenarios, traders interpret the negative value as a warning of potential continued downtrends or selling pressure.
WIF Elder-Ray Index. Source: TradingViewAdditionally, WIF’s Relative Strength Index (RSI) indicates declining buying pressure. The RSI, which gauges overbought and oversold conditions, ranges from 0 to 100. Readings above 70 signal that an asset is overbought and may face a correction, while values below 30 indicate it is oversold and could see a rebound.
Currently, WIF’s RSI sits below the 50-neutral line at 44.80, reflecting weakened bullish momentum.
WIF RSI. Source: TradingViewWIF Price Prediction: The Sub-$3 May Be At Hand
WIF is currently trading at $3.46, hovering just above its support level of $3.35. If the ongoing downtrend continues, the meme coin is likely to test this support. A breach at $3.35 could lead to a further drop to $3, with the possibility of declining to $2.57 if selling pressure intensifies.
WIF Price Analysis. Source: TradingViewHowever, this bearish outlook could be reversed if WIF experiences a surge in new demand, which could drive its price upward toward $4.19.
