Dogwifhat (WIF) faces strong bearish trend as price decline worsens

Dogwifhat (CRYPTO:WIF) is currently facing significant price challenges as it struggles to reverse a persistent downward trend. 

Over the past week, the meme coin has seen its value drop by 27%, erasing gains made earlier in the month. 

This decline is largely driven by mixed investor sentiments and broader market conditions, which are further weakening the possibility of a price rebound.

Investor uncertainty is evident in the fluctuating Funding Rate, which has oscillated between positive and negative territory over the last two weeks. 

This lack of clear direction indicates hesitation among WIF holders, leading to increased market volatility as traders grapple with whether to adopt a bullish or bearish stance.

Additionally, the Average Directional Index (ADX) is signaling a strengthening bearish trend. 

Currently above the critical threshold of 25.0, the ADX suggests that the downtrend is gaining momentum, putting further pressure on WIF’s price.

As WIF continues to decline, it is now trading at $1.39, marking a 27% drawdown over the last seven days. 

This drop has nearly undone the 51% rally seen in early August, leaving the coin vulnerable to further losses. 

If the downward trend continues, WIF could fall to a critical support level of $1.24, and if this level is breached, the price may hit a five-month low of $1.04.

However, there is a possibility that WIF could bounce back if it manages to hold the $1.24 support level. 

Should this happen, the meme coin could attempt to reclaim the $2.01 level, which would invalidate the current bearish outlook.

Despite the ongoing challenges, the future of WIF’s price remains uncertain, with investors closely watching key support and resistance levels for potential signs of a reversal.