• WIF surged 34% after a Vegas Sphere tease but has since dropped 13% from $1.37 high.
• Open interest fell 19% in 24 hours, signaling waning market participation.
• If selloffs continue, WIF could drop to $0.97; a bullish reversal could push it to $1.88

Solana-based meme coin Dogwifhat (WIF) recorded a 34% price surge during the intraday trading session on Wednesday. The rally followed speculation that the project might receive a promotion on the Vegas Sphere.

However, this price uptick has proven to be short-lived. WIF’s value has started to retreat, erasing much of the gains made earlier.

Dogwifhat‘s Rally Cut Short By the Sellers

In an X post on Wednesday, the developer team behind Dogwifhat teased a possible promotion of the Solana-based meme coin on the Vegas Sphere.

WIF, whose price performance had been lackluster, immediately climbed by over 30% as demand poured through its spot markets. However, this price spike turned out to be temporary, as the meme coin reversed the trend. Currently trading at $1.19, WIF has dropped 13% from yesterday’s intraday high of $1.37.

An assessment of WIF’s open interest confirms the waning demand. According to Coinglass, this currently sits at $372 million, falling 19% in the past 24 hours.

Open interest refers to the total number of outstanding contracts, such as futures or options, that have not been settled. When open interest drops during an asset’s price decline, investors are closing their positions and exiting the market. This trend indicates reduced market participation or waning confidence in the WIF’s future price movement.

Furthermore, the meme coin still trades below the red line of its Super Trend indicator, suggesting that bearish bias remains significant.

This indicator helps traders identify the market’s trend by placing a line above or below the price chart based on the asset’s volatility. As with WIF, when an asset’s price trades below the Super Trend line, it signals a bearish trend, indicating that the market is in a downtrend and selling pressure is dominant.

WIF Price Prediction: Token Risks Falling Below $1

If selloffs continue to dominate the market, WIF’s price could extend its decline and fall below $1 to trade at $0.97. This would mean an 18% drop from its current value.

However, if buying activity resumes and the bulls regain dominance, they might be able to push the meme coin’s price above the dynamic support resistance of its Super Trend indicator at $1.62. A successful break above this level could propel WIF to trade at $1.83.