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- Dogwifhat (WIF) has seen a sharp decline in social engagement and investor interest, particularly since its peak between March and April.
- In August, WIF’s outflows intensified, leading to a drop in price and further weakening investor sentiment.
August 19th- Dogwifhat (WIF) is experiencing a significant drop in social traction and investor interest, according to data from Kaito and Coinglass. This decline comes after a strong period of social mindshare on X earlier this year.
WIF’s Social Traction Fades
According to Kaito data, WIF’s social mindshare has dropped drastically from its high in March and April. At that time, WIF-related posts on X received a lot of attention, particularly from the main crypto influencers. Unfortunately, this momentum was short-lived, and WIF was left with little engagement on social media platforms.
One notable observation from Kaito data stated, “From start to finish of the $WIF run-up, key CT accounts had super high engagement on related tweets. And then… they moved on.” This shift in attention highlights a broader trend of declining interest in the meme coin.
Tracking engagement of the smartest accounts.
From start to finish of the $WIF run up, key CT accounts had super high engagement on related tweets.
And then… they moved on. pic.twitter.com/v4JFX4pUUr
— Kaito AI 🌊 (@_kaitoai) August 17, 2024
The social volume is on the decline, a fact that is echoed by a negative shift in investors’ perception. WIF’s spot net flows have been negative in recent months due to low demand from traders and investors. In August, the outflows accelerated, taking WIF to a new low of $1.07.
According to Coinglass, there was a net outflow of about $24 million between August 12 and 18. This only strengthens the notion of why the market participants have very little interest in WIF.
The weighted sentiment for WIF has dipped below the zero line, which suggests a bearish trend. This sentiment has been accompanied by a decrease in open interest, indicating that long-term holders are closing their positions to capture gains in the face of market volatility.
The futures market has also witnessed massive liquidations, which is a bearish signal for WIF. In the last 24 hours, long liquidations amounted to $315. 32k, while short liquidations were at $90. 90k. This imbalance shows the pressure that the long-position holders are under, and it only adds to the bearish pressure on WIF.
Technical Indicators Point to Limited Recovery Prospects
The bearish sentiment is also evident in WIF’s price action in August. Recovery prospects for the meme coin remain limited as technical indicators like the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) have remained weak.
However, WIF could not hold on to the gains and traded below the $1.5 mark once again after a short-lived bounce. This setback happened despite WIF momentarily surpassing other memecoins such as Dogecoin (DOGE).
Accompanying the bearish sentiment even more, futures market traders are now shorting WIF. According to Coinglass, the open interest on futures contracts that were bearish on WIF over the weekend was 52.7%.
This price drop of WIF is in line with other memecoins in the market in the recent past. Other leading memecoins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), have also felt the downward pressure in their prices. Dogecoin, the largest memecoins by market capitalization, has declined by around 10% within the last nine days.
