Dogwifhat (WIF), the popular Solana-based memecoin, appeared to be struggling near a key support level

According to CoinMarketCap, while the memecoin recently saw an upside of over 75%, it failed to sustain it on the charts.

Dogwifhat (WIF), the popular Solana-based memecoin, appeared to be struggling near a key support level after a notable upside rally. According to CoinMarketCap, while the memecoin recently saw an upside of over 75%, it failed to sustain it on the charts. In fact, it might be on the verge of a price crash now.

At press time, WIF was trading at $0.559, having dropped by 5.5% over the past 24 hours. This price drop seemed to be fueling fear among traders and investors, leading to lower participation.

During the same period, the memecoin saw a 40% drop in trading volume. This fall in trading volume, along with the price, hinted at weak bearish momentum in the asset.

Dogwifhat (WIF) price action & technical analysis

As per AMBCrypto’s analysis, WIF is currently at a make-or-break level. The daily chart revealed that if the prevailing market sentiment remains unchanged and the memecoin fails to hold its key support level of $0.545, it could shift WIF back towards the bearish side.

If WIF’s price breaches and closes a daily candle below the $0.545-level, it could drop by 25%, potentially hitting the $0.41-level in the coming days.

On the other hand, if the memecoin holds this support and stays above the $0.545-level, it still has a chance to gain upside momentum in the coming days.

At the time of writing, WIF’s Chaikin Money Flow (CMF) indicator was in positive territory, with a value of at +0.04. This alluded to strong buying pressure in the asset. However, this will only hold if the memecoin remains above the support level.

Bankless Factor

Subscribe to Ben's Bankless newsletter for a unique perspective on web3 and crypto market trends.

Bearish on-chain metrics

Despite the crypto’s unclear price action, on-chain analytics firm Coinglass seemed to be flashing a bearish signal. This indicated that WIF’s price may decline in the coming days.

At press time, WIF’s Open Interest (OI)-weighted funding rate stood near -0.00103%, indicating strong bearish sentiment as more traders seemed to be betting against the memecoin.

This bearish outlook can be further confirmed by WIF’s long/short ratio, with the same having a value of 0.944. This reading signaled a dominance of short positions.

Additional data highlighted that 51.44% of WIF traders globally were positioned short, while 48.56% were on the long side.

This metric clearly highlighted that traders’ outlook for the WIF memecoin is bearish, and it could soon record a price decline on the charts.