The Dogwifhat (WIF) price has been struggling to close above $3.5 for the past month, which has disincentivized investors.
As a result, the Solana-based meme coin is now losing the support of the market and WIF holders.
Dogwifhat Loses Backing
The actions of its investors have always impacted WIF price. However, over the last few days, it has been suffering the impact of the lack of its investors’ interest. As evident in the Open Interest, not many people are leaning towards pouring their money into the asset.
Open interest (OI) represents the total number of outstanding derivative contracts that have not been settled, such as futures or options. It indicates market activity and liquidity, providing insights into potential price movements.
Over the past month, WIF’s OI has only risen by $70 million from $236 million to $310 million. This shows that few people are placing bets in the Futures market, least of which are likely long contracts.
WIF Open Interest. Source: Coinglass
Secondly, the meme coin has a negative correlation to the biggest crypto asset in the world, Bitcoin. This means that WIF’s price, being negatively correlated, is more likely to move in the opposite direction to BTC’s price.
Read More: How To Buy Dogwifhat (WIF) and Everything Else To Know
WIF Correlation to Bitcoin. Source: TradingView
Thus, over the weekend, Bitcoin’s price and the rest of the market rallied while the WIF price fell. This cemented the negative correlation, and until this changes, the Solana-based meme coin could continue witnessing opposite outcomes to Bitcoin.
WIF Price Prediction: Recovery or Decline Next?
WIF price fell out of the ascending channel, which was considered to be a bullish channel. A breakout from it would have pushed the meme coin to $3.6 and higher. However, the altcoin has already been facing strong resistance at $3.5, making it a crucial barrier to overcome.
The weekend dip pushed the WIF price further below $2.50, from which it has slightly recovered to trade at $2.69 at the time of writing. If the crypto asset fails to breach the resistance marked at $2.75, it will fall back towards $2.36.
Read More: Dogwifhat (WIF) Price Prediction 2024/2025/2030
WIF Price Analysis. Source: TradingView
On the other hand, a breach would help the meme coin recover from its recent losses. As a result, the WIF price would be enabled to flip $3.00 into a support floor, invalidating the bearish thesis.
Disclaimer
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