Fun

Why is Solana's Dogwifhat (WIF) memecoin crashing?

News Feed - 2024-08-18 01:08:17

Yashu Gola7 hours agoWhy is Solana"s Dogwifhat (WIF) memecoin crashing?WIF price risks declining by another 48% due to the formation of a classic bearish reversal setup.1636 Total views29 Total sharesListen to article 0:00Altcoin WatchOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onDogwifhat (WIF), the fourth-largest memecoin by market capitalization, is on the brink of erasing the recovery it achieved after the Aug. 5 crypto market crash. WIF has dropped approximately 30% from its Aug. 9 local top of around $1.95, bringing its price down to $1.36 as of Aug. 17.WIF/USDT daily price chart. Source: TradingViewWIF crashes alongside other memecoins 


WIF’s price declines accompany similar downside moves across other top memecoins, namely Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE). For instance, DOGE, the largest memecoin by market capitalization, has dipped by approximately 10% in the last nine days.Top memecoin tokens daily and weekly performance. Source: Messari


Among the leading memecoins, WIF has experienced more significant losses over weekly and monthly timeframes. For instance, WIF’s 30-day returns are around -42%, far exceeding DOGE (-15%) and SHIB (-23.5%).Top memecoins year-to-date returns. Source: Messari


WIF had an exceptional year-to-date performance, with returns reaching approximately 708%, second only to Popcat (POPCAT), another Solana-based token that surged by around 4,570%. Such substantial gains likely attracted profit-taking from early investors, leading to increased selling pressure.Long liquidations outnumber shorts


Dogwifhat"s 30% correction from its Aug. 9 local top coincides with a higher number of long liquidations in the WIF futures market relative to short liquidations.


Over the past nine days, there have been cumulative long liquidations of $6.932 million versus $3.16 million in short liquidations, according to Coinglass data.WIF total liquidation chart. Source: Coinglass


It shows that many traders were overly bullish on WIF, possibly expecting the price to continue rising after the Aug. 9 peak. They opened leveraged long positions in the futures market, betting on further price increases.


As the price of WIF began to decline, it triggered margin calls for these over-leveraged long positions. If traders cannot meet these margin calls by adding more collateral, the exchange automatically liquidates their positions to cover the losses.


This forced selling amplifies the downward pressure on the price, contributing to the 30% correction.Is Dogwifhat price bottoming out?


WIF’s downside risks remain intact as it forms what appears to be a classic head-and-shoulders (H&S) pattern. 


An H&S pattern is characterized by forming three consecutive peaks — the middle peak called the head being higher than the other two called shoulders — atop a common support level called the neckline.


Related: Memecoin ‘retail mania’ could go the way of ICOs and NFTs, say execs


As a rule, an H&S pattern resolves when the price breaks below the neckline while accompanying a rising trading volume. It then falls by as much as the maximum distance between the head’s top and neckline.WIF/USDT daily price chart. Source: TradingView


As of Aug. 17, WIF attempted to break below its H&S neckline level of around $1.46. Should it be successful, then its price may fall toward the downside target of around $0.725 by September, down approximately 48% from the current price levels. 


Conversely, reclaiming the neckline as support, followed by a close above WIF’s accumulation area — the $1.48-1.69 range highlighted via the red bar — may invalidate the H&S setup altogether. Should it happen, WIF’s immediate upside targets are around its 50-day (the red wave) and 200-day (the blue wave) exponential moving averages. 


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Dogecoin# Altcoin# Analysis# Markets# Tech Analysis# Market Analysis# Solana# Shiba Inu# Memecoin# PepeAdd reaction

News Feed

Price analysis 7/19: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
Rakesh Upadhyay4 hours agoPrice analysis 7/19: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIBBitcoin turned up sharply and broke above the overhead resistance, indicating the resumption of the upmove toward $70,000.
Arijit Sarkar1 hour agoCFTC Commissioner plans to modernize investor protection with technologyTo minimize the damages caused by financial fraud, Romero proposed the formation of the National Financial Fraud Registry —
Amon, AI-Powered Crypto Wallet and Card Is Fundraising on BnkToTheFuture
Amon, AI-Powered Crypto Wallet and Card Is Fundraising on BnkToTheFuture PRESS RELEASE. Amon, known for their innovative app that aims to make using digital curr
Massive 70 MW Bitcoin Mining Rig Shipped to Russia
Massive 70 MW Bitcoin Mining Rig Shipped to Russia Big moves are happening within the bitcoin mining industry in Russia. An unnamed miner sent what seems to be t
Localbitcoins P2P Exchange Launches Mobile App for Android
Localbitcoins P2P Exchange Launches Mobile App for Android Peer-to-peer cryptocurrency marketplace Localbitcoins has announced the launch of a new mobile application for its global
Amaka Nwaokocha11 hours agoNamibia passes bill to regulate crypto and digital assetsThe legislation aims to establish a framework for licensing and regulating virtual asset service providers.1360 Total views1 Total share
Colorado Church group tokenizes $2.5M chapel
Tristan Greene7 hours agoColorado Church group tokenizes $2.5M chapelThis may be the first tokenized church in the world.4878 Total views15 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect th
Jim Cramer Advises Against Using Binance — Says Crypto Exchange Is ‘Way Too Sketchy’
Jim Cramer Advises Against Using Binance — Says Crypto Exchange Is "Way Too Sketchy" The host of Mad Money, Jim Cramer, has warned investors about using cryptocurrency exchange B
Bitcoin Outshines Gold for First Time Since June
Bitcoin logged double-digit gains in October, outperforming gold for the first time since June. The world’s biggest cryptocurrency by market value ended last month with a gain
Filipino artists hacked to promote XRP scam
Ezra Reguerra10 hours agoFilipino artists hacked to promote XRP scamBen&Ben, a nine-piece pop band with over 3 million YouTube followers, started livestreaming a fraudulent XRP advertisement.2256 Total views13 Total
Russian Bitcoin Mining Assessed Amid Conflict With Ukraine, Large ETH Pool Cancels Service to Russia
Russian Bitcoin Mining Assessed Amid Conflict With Ukraine, Large ETH Pool Cancels Service to Russia With the conflict between Russia and Ukraine, many observers are curious about
XRP Skeptic Turned Believer? Critic Hails XRP As Crypto’s Chart King
Este artículo también está disponible en español. A former XRP skeptic has made an unexpected statement declaring the present price chart of XRP to be the best among all