Dogwifhat (WIF) Tumbles 24% in a Week – Is $0.709 the Final Floor Before Freefall?

Memecoin darling dogwifhat (WIF) isn’t laughing this week – a brutal 24% nosedive leaves traders sweating over the $0.709 support level. Will it hold, or is this the start of another ’wen lambo’ sob story?

Technical analysts scramble as WIF’s chart looks uglier than a bear market portfolio. That $0.709 line? It’s the last hope before a potential plunge into the abyss – or at least until the next crypto influencer pumps it on Twitter.

Meanwhile, Bitcoin ETFs get all the institutional love while memecoins like WIF play musical chairs with retail money. Just another day in the decentralized casino.

Investors are selling and backing out

A recent analysis shows that investor sentiment reflects ongoing sell-offs, as holders continue to offload their WIF positions.

Notably, a CoinGlass metric shows that about 15% of investors voted to sell WIF. They no longer believe in its potential.

Since the 28th of May, investors have been leaving the market for four days straight. This confirms that selling pressure is increasing.

Source: CoinMarketCap

However, dogwifhat’s decline over the past 24 hours has also been influenced by broader market turmoil and a surge in selling volume.

At the time of writing, trading volume has increased by 38.16%. When price drops and volume rises, it implies more selling activity is taking place, and WIF could slide lower.

Market analysis could be worse for WIF

Market analysis shows that dogwifhat is in a tight spot, with the asset just one support level away from trading back to its May low.

Analysis indicates that WIF currently has one support level left, precisely at $0.709, which the price is now approaching.

Source: TradingView

Typically, this level should provide a rebound, assuming the market’s selling momentum has weakened and buyers regain confidence in the asset.

If this level fails, WIF will likely trend back to its previous low of $0.523, a level last reached on the 6th of May —the month’s low.

The question remains: will WIF rebound from this support level or trend lower?

Which path will WIF take?

Analysis by AMBCrypto found that despite the high selling pressure, especially in the past 24 hours, the market appears exhausted.

Currently, the exhaustion phase has shown up in both the Money FLOW Index (MFI) and the Relative Strength Index (RSI).

The Money Flow Index (MFI), which tracks the inflow and outflow of liquidity into an asset, sat below 20, at 4.09, at press time—indicating the market was oversold.

Source: TradingView

The Relative Strength Index (RSI) tells a similar story, having dropped below its oversold region and now trading below the 30 mark.

At the time of analysis, RSI stood at 19.9, suggesting more sellers may begin buying as the market hits exhaustion.

Historically, such a point has often catalyzed a price rally. Interestingly, there is no definitive timeline for when buying may resume, but spot traders are likely to play a major role in supporting a rally.