Dogwifhat (WIF) and BONK Meme Coin Prices Plunging – Here’s Why
Dogwifhat (WIF) and BONK, two popular meme coins, have experienced notable price drops with much of the reason attributed to the overall downturn in the cryptocurrency market. Bitcoin fell to $62,746, leading to a broader market decline that has impacted the prices of various altcoins, including WIF and BONK.
Dogwifhat (WIF) Faces Resistance at $3.57, Fails to Gain Traction
The daily chart RSI (Relative Strength Index) for WIF stands at 55.97, indicating a neutral momentum. An RSI value above 70 is considered overbought, while a value below 30 is considered oversold. With WIF’s RSI at 55.97, the cryptocurrency is neither overbought nor oversold, suggesting a balance between buying and selling pressure.
Over the past 24 hours, WIF has traded between a low of $3.22 and a high of $3.57, showcasing the volatility in the meme coin’s price action.
BONK Breaks Down from Descending Channel, Faces Resistance at $0.00002946
BONK has also experienced a price decline, breaking down from a descending channel pattern. The cryptocurrency faced resistance at the $0.00002946 level a few days ago but failed to gain enough traction to break through this level.
BONK is currently trading at $0.00002503, representing a 5.84% decrease over the past 24 hours. The meme coin’s 200-day moving average (MA) stands at $0.000012, which is significantly lower than the current trading price.
The 200-day MA is a widely used long-term trend indicator, and when a cryptocurrency’s price is above this level, it is generally considered a bullish sign. BONK’s position above the 200-day MA suggests that the long-term trend remains favorable, despite the recent price decline.
The daily chart RSI for BONK stands at 54, indicating a neutral momentum, similar to WIF. An RSI value of 54 suggests that the cryptocurrency is neither overbought nor oversold, and there is a balance between buying and selling pressure.
Over the past 30 days, BONK has traded between a low of $0.00001257 and a high of $0.00002946, highlighting the meme coin’s price range and volatility.
Factors Contributing to the Price Decline
The recent price declines of Dogwifhat (WIF) and BONK can be attributed to several factors, including:
- Overall Market Downturn: The broader cryptocurrency market has experienced a downturn, with Bitcoin’s price drop leading to a cascading effect on altcoins, including meme coins like WIF and BONK.
- Resistance Levels: Both WIF and BONK faced significant resistance levels that they failed to break through, leading to a loss of momentum and subsequent price declines.
- Profit-Taking: As meme coins are often subject to high volatility and speculative trading, some investors may have taken profits during the recent price highs, leading to increased selling pressure.
