dogwifhat dips 64% in a month: Can bulls stop the downtrend?

• WIF has declined by 64.14% over the past thirty days.
• Amidst strong bearish sentiments, dogwifhat must hold above $0.61 or drop to a yearly low.

Since hitting a local high of $1.9 a month ago, dogwifhat [WIF] has traded in a descending trend. Over this period, the memecoin has been forming lower highs and lower lows.

In fact, at the time of writing, dogwifhat was trading at $0.6153. This marked a 7.33% decline in daily charts.

Equally, the memecoin has declined on weekly and monthly charts, dropping by 10.63% and 63.14% respectively.

With these continued losses, WIF seems positioned for a further breakdown if bears continue dominating the market. Thus, the question is could WIF decline further, or the sellers are exhausted?

Will dogwifhat’s free fall continue?

According to AMBCrypto’s analysis, dogwifhat is experiencing strong downward pressure, with bears dominating the market.

The recent bearish crossover on Stoch RSI confirms this downward pressure. The memecoin’s bearish crossover suggests that downside momentum is strengthening. 

As a result, the asset is making more losses than recent gains.

Source: TradingView

The continued decline of +DI of DMI, while ADX remains relatively high, further validates the downward pressure.

The negative index has surged to 43.3 and now sits above the positive index, which has dropped to 13.

When the directional movement index is set like this, it indicates strong downward momentum.

Source: MobChart

Looking further, we can see this bearish dominance as dogwifhat’s Delta has remained negative over the past few days.

When the delta turns negative, it implies that selling pressure outweighs buying, signaling the possible continuation of this trend.

Source: Santiment

Additionally, dogwifhat’s Open Interest (OI) per exchange has dropped from $89 million to $67 million over the past week.

A drop in OI suggests that existing investors are closing their positions, while new investors are avoiding the market.

This reflects strong bearish sentiment, indicating that investors have lost confidence in market prospects.

What’s the next move for WIF?

With strong bearish sentiment in the market, WIF is testing a key support level of around $0.61. Therefore, for a bullish reversal, the memecoin must hold above $0.61.

Consequently, a breach below this level will see the dogwifhat drop to $0.5 or $0.44 hitting a yearly low.