The Solana-based memecoin dogwifhat (WIF) has experienced a substantial drop in value within the past 24 hours. This places WIF among the top losers in the market during this period, as reported by CoinMarketCap.
At present, WIF is valued at $2.69, reflecting a 12% depreciation over the course of 24 hours. Additionally, the daily trading volume has seen a decline of 38% during the same timeframe.
Traders and investors engaged in WIF have shown signs of wavering bullish convictions. Recent market activity analysis reveals a surge in negative sentiments surrounding the memecoin. Santiment’s weighted sentiment metric, at -0.546, aptly portrays the dominance of bearish sentiment among WIF’s market participants.
Supporting this bearish trend, WIF’s funding rate has also turned negative. The latest data from Coinglass indicates a funding rate of -0.0009% across cryptocurrency exchanges. Interestingly, this marks the second instance of WIF’s funding rate being negative since February 8th.
Funding rates play a vital role in perpetual futures contracts, ensuring that the contract price aligns closely with the spot price. Positive funding rates indicate a higher contract price compared to the spot price, resulting in long position holders paying fees to short traders.
Conversely, negative funding rates occur when the contract price is lower than the spot price, which requires short traders to pay fees to long position holders. Consequently, a negative funding rate signifies an increased number of short positions, implying a bearish market sentiment among traders.
Apart from the negative funding rate, WIF’s futures open interest has steadily declined since April 9th. The current value stands at $302.45 million, reflecting a significant 41% decrease.
Due to WIF’s continuous decline in price, long traders have experienced higher liquidations compared to traders with short positions over the past week. Long liquidations amounted to $1.7 million as of April 26th, whereas short positions saw liquidations worth ‘just’ $1 million.
As WIF faces these challenges, investors and traders closely monitor the market for any signs of a potential reversal in its fortunes.
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The decline in value of the Solana-based memecoin WIF has raised concerns among traders and investors. Within the past 24 hours, WIF has experienced a depreciation of 12% and a decline in daily trading volume of 38%. This downward trend places WIF among the top losers in the market.
The market sentiment surrounding WIF has turned bearish, as evidenced by Santiment’s weighted sentiment metric of -0.546. This indicates a dominant negative sentiment among market participants. Additionally, WIF’s funding rate has turned negative, with Coinglass reporting a rate of -0.0009% across cryptocurrency exchanges. This negative funding rate aligns with the increased number of short positions, further indicating a bearish market sentiment.
Furthermore, WIF’s futures open interest has steadily declined by 41% since April 9th, reaching a value of $302.45 million. This decline suggests a decrease in market participants’ interest in holding futures contracts for WIF.
The challenges faced by WIF have also led to higher liquidations for long traders compared to those with short positions. As of April 26th, long liquidations amounted to $1.7 million, while short positions saw liquidations worth $1 million.
In light of these market trends, investors and traders are closely monitoring WIF for any signs of a potential reversal. It remains to be seen whether WIF can regain value and overcome the current bearish sentiment.
Advantages of investing in WIF include the potential for significant returns if the market sentiment shifts and the coin’s value increases. WIF being based on Solana, a fast and scalable blockchain platform, may also attract investors looking for efficient transactions.
However, there are key challenges and controversies associated with WIF. The memecoin market is known for its volatility and speculative nature, making it a risky investment. The declining value, negative funding rate, and decreasing futures open interest all raise concerns about the long-term stability and viability of WIF.
To stay updated on the latest news and developments surrounding WIF and the broader cryptocurrency market, you can visit CoinMarketCap at coinmarketcap.com.
Sources:
– Santiment’s weighted sentiment metric: app.santiment.net
– Coinglass funding rate data: coinglass.com