The popular meme cryptocurrency Dogwifhat (WIF) has plunged below $1.60, marking its lowest price point in four months. The sharp 15% decline over the past 24 hours extends WIF's monthly losses to 47%, as the broader meme coin market experiences a substantial correction.
The downward pressure shows no immediate signs of relief, with technical indicators pointing to potential further declines. Market analysts suggest WIF could test support levels at $1.32, with a possibility of dropping as low as $1.07 if current market conditions persist.
The cryptocurrency's Relative Strength Index (RSI) has dropped to 17.8, entering deeply oversold territory. This dramatic shift follows a period of relative stability between December 20 and January 7. While such extreme oversold conditions often precede price rebounds, the current market sentiment remains bearish.
Adding to the bearish outlook, WIF's Average Directional Index (ADX) has more than doubled to 43.7 from 19.9 in just one day, indicating strengthening downward momentum.
The meme coin sector as a whole is experiencing widespread losses, with major players like Shiba Inu (SHIB) and Dogecoin also recording double-digit percentage drops. This sector-wide correction comes as the global cryptocurrency market faces increased selling pressure.
However, market observers note that a shift in sentiment could trigger a recovery for WIF, potentially pushing prices toward resistance levels at $1.73 and possibly $2.2. The cryptocurrency market's notorious volatility means rapid price movements in either direction remain possible.
As the meme coin market continues to correct, investors and traders are closely monitoring key support levels and technical indicators for signs of potential trend reversal or further decline.