In the current bearish market sentiment, Solana-based Dogwifhat (WIF) is poised for a potential price correction in the coming days. On September 11, 2024, WIF experienced a price drop of over 8% and is now there at a crucial level. However, the on-chain metrics such as WIF’s long/short ratio, WIF OI-weighted funding rates, and future open interest are flashing bearish signals.

WIF Price Performance

As of writing, WIF is trading near $1.53 and has experienced a price drop of over 8% in the last 24 hours. Meanwhile, its trading volume has increased by 10% during the same period, indicating higher participation from traders and investors despite the price drop.

Dogwifhat (WIF) Technical Analysis and Upcoming Levels

According to expert technical analysis, WIF appears bearish and is trading below the 200 Exponential Moving Average (EMA) on a four-hour time frame. Additionally, it is currently at a crucial support level of $1.516.

If fails to hold this level and closes a four-hour candle below the $1.5 level, there is a high possibility WIF price could fall by 12% to the $1.3 level in the coming days.

Bearish On-chain Metrics

WIF’s bearish outlook is further supported by the on-chain metrics. Coinglass’s WIF Long/Short ratio currently stands at 0.927, suggesting bearish market sentiment. According to the data, a long/short ratio below 1 indicates a bearish sentiment and vice-versa. Meanwhile, the WIF OI-weighted funding rate is -0.0097%, further indicating bearishness.

Additionally, its future open interest has also declined by 10%, indicating traders are either closing their positions or have been liquidated due to the recent price drop, and are currently hesitant to build new positions.

Whales Scoop Up WIF Despite Bearish Sentiment

Despite this bearish outlook, whales and investors appear to be showing interest in WIF, as it has experienced a notable price decline in recent days. According to the on-chain analytic firm Lookonchain, two whales have accumulated a significant 20.58 million WIF tokens, worth $33.35 million from Binance and Bybit in the past two weeks.