Just a few days after Dogwifhat (WIF) led the memcoin rally, he began to give up the positions he had won
Popular at the time of writing memcoin dog-themed Dogwifhat (WIF) had the seventh biggest loss among cryptocurrencies in the last 24 hours.
Dogwifhat broke the support level
Dogwifhat is down 13% in the last 24 hours. This drop followed several days of growth, which resulted in na daily graphics an ascending channel has formed. Such a one technical pattern appears when the value of the asset consistently marks rising highs and lows, forming two parallel upward trend lines.
The upper line of this channel serves as resistance, while the lower line is seen as support. In the case of WIF, they are placed at $2.62 and $2.37, respectively.
When the buying pressure faded, the price of WIF fell below the lower border of the channel on the third of July. This indicated the inability of the bulls to defend the support level.
An asset’s break below a support line means that selling pressure exceeds buying pressure at a given level. Traders take this as a sign of weakness, which encourages them to sell further. As a consequence, WIF may continue to fall.
Despite the decrease in the price in the last 24 hours, the trading volume token increased during this time by 101 percent to $621 million.
When an asset’s value falls and its trading volume rises, a bearish divergence occurs. She points out that many market participants are selling their assets due to falling prices and this is further supporting the downtrend.
WIF forecast: pessimists lead
Parabolic Stop and Reversal Indicator (SAR) confirms the change in market sentiment on WIF. At the time of writing, the point of this indicator is above the token prices. Before that, they were below the price for eight days.
If the SAR points are above the value of the asset, the market is considered bearish. This indicates that the asset may continue to fall. If this trend continues, WIF could fall to $1.71.