On November 13, active Dogwifhat (WIF) addresses increased to 17,000. However, as of this writing, this number has almost quintupled, indicating that interest in the meme coin has waned.
This drop also coincided with WIF’s price dropping by $4.20. Here is an in-depth analysis of how the decrease in active addresses could affect the value of the meme coin in the near term.
Dogwifhat network activity drops
WIF price surpassed $4 on the same day active addresses reached their highest level since March 14. This rise implies that user engagement was essential to the bullish performance of the meme coin.
From now on, daily active WIF addresses for the Solana meme coins fell to 3,692, signaling a sharp decline in the wallet activity compared to just a week ago. This drop suggests a decline in interest in transactions involving the coin.
Historically, such a drop in active addresses has been a bearish indicator, often signaling slowing momentum and potential future price weakness. It is therefore not surprising that WIF price could not hold the $4 support and is now trading at $3.27.
Another measure suggesting that WIF may fail to bounce back at $4 quickly, that’s the level-headed sentiment. This metric measures the perception that market participants have of a token.
When reading is positive, weighted sentiment implies that most online comments about a project are optimistic. On the other hand, if the metric reading is negative, it means the average remark on the asset is bearish.
In the case of WIF, it is the latter solution. If it stays the same, then the Coin Value Solana Meme could fall below $3.27 in the near term.
WIF Price Prediction: Below $3
From a technical perspective, the daily chart shows the Awesome Oscillator (AO) flashing red histogram bars. The AO is a technical oscillator that compares historical price movements with recent movements to measure momentum.
When the reading is positive, the momentum is bullish. But when it is negative, it is bearish. In this case the reading is positive, but since the histogram is red it indicates that bullish momentum fades.
If this remains the case, WIF could fall to $2.69. On the other hand, if the dynamic becomes bullish again, this prediction might not come true. Instead, WIF could rally back to $4.79.
Disclaimer
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