Dogwifhat Plummets 64%: Can Meme Coin Rebound?

Dogwifhat, a popular memecoin, has experienced a significant decline of 64.14% over the past month, raising concerns about its future trajectory. The asset has been trading in a descending trend, forming lower highs and lower lows since hitting a local high of $1.9 a month ago. At the time of writing, dogwifhat was trading at $0.6153, marking a 7.33% decline in daily charts, and a 10.63% and 63.14% decline on weekly and monthly charts, respectively.

Analysts at AMBCrypto have noted strong downward pressure on dogwifhat, with bears dominating the market. The recent bearish crossover on Stoch RSI confirms this downward pressure, suggesting that the asset is making more losses than recent gains. The continued decline of +DI of DMI, while ADX remains relatively high, further validates the downward pressure, with the negative index surging to 43.3 and now sitting above the positive index, which has dropped to 13.

Looking further, the bearish dominance is evident as dogwifhat's Delta has remained negative over the past few days. When the delta turns negative, it implies that selling pressure outweighs buying, signaling the possible continuation of this trend. Additionally, dogwifhat's Open Interest (OI) per exchange has dropped from $89 million to $67 million over the past week, reflecting strong bearish sentiment and a lack of confidence in market prospects.

With strong bearish sentiment in the market, dogwifhat is testing a key support level of around $0.61. For a bullish reversal, the memecoin must hold above this level. However, a breach below this level will see the dogwifhat drop to $0.5 or $0.44, hitting a yearly low. The question remains: will dogwifhat's free fall continue, or are the sellers exhausted?