Dogwifhat （WIF） experiences a 28% decline in open interest as traders anticipate a near-term retest of the $1.50 support level.
Points
- Dogwifhat （WIF） open interest drops by 28% to $252.5 million.
- WIF is down 35.48% since July 27, trading at $1.67.
- Traders expect a near-term retest of the $1.50 support level.
- Significant risks for long and short positions based on price movements.
Dogwifhat （WIF）, a Solana-based memecoin, has seen a notable decline in open interest （OI）, falling by 28% to $252.5 million. This decline comes amidst a broader price drop since July 27, with WIF trading at $1.67, down 35.48% from its previous levels.
Open Interest Decline
The decline in open interest reflects reduced market participation and sentiment towards WIF. As traders anticipate further price drops, the total value of outstanding or unsettled WIF futures contracts has decreased significantly.
Anticipated Retest of $1.50 Level
Several crypto traders expect WIF to retest the critical $1.50 support level in the near term. This level has been identified as a crucial support zone, and its breach could lead to further price declines. Traders on X have shared their insights, predicting that WIF is likely to move towards this lower support trendline.
“WIF, in the daily timeframe, is in a correction phase and is likely to move down toward the lower support trendline between $1.50 and $1.70,” tweeted Cryptorphic.
Future Traders’ Outlook
Future traders remain cautious about a quick rebound. Short positions worth $11.89 million could be at risk if the price recovers to $1.80, while a further 10% decline to $1.50 would wipe out $7.55 million in long positions. This highlights the significant risks associated with WIF’s current price movements.
Conclusion
The decline in Dogwifhat’s open interest and the anticipated retest of the $1.50 support level indicate ongoing bearish sentiment. Traders should remain cautious and closely monitor these critical levels to navigate the potential risks and opportunities in the WIF market.
解説
- The significant decline in WIF
解説
- The significant decline in WIF’s open interest reflects reduced market confidence and participation.
- Traders should be cautious of the anticipated retest of the $1.50 support level, as its breach could lead to further declines.
- Future traders face considerable risks based on WIF’s price movements, with both short and long positions at stake.
- Monitoring critical support levels and market sentiment is essential for navigating the volatile WIF market effectively.