The cryptocurrency market is experiencing a significant downturn, and analyst CryptoBusy has identified an opportunity for traders. On August 5, 2024, the analyst highlighted that a short position on dogwifhat (WIF) was activated. The crypto has experienced a substantial drop of 20% in one day, presenting a potential profit opportunity even as the market declines.
The provided chart shows the price action of dogwifhat (WIF) against USDT on the MEXC exchange, using a 4-hour timeframe. The chart reveals a clear downtrend characterized by lower highs and lower lows. The price recently broke below a crucial horizontal support level at approximately $1.486. This break has transformed the $1.486 level from support to resistance. The measured move from the support break to the current price indicates a drop of $0.304, equivalent to a 20.51% decrease in value. This confirms the profitability of the short position activated by CryptoBusy.
The activation of the short position reflects a bearish market sentiment, suggesting traders are betting on continued price declines. The significant drop in price, alongside the break of key support levels, reinforces this bearish outlook. The short position appears profitable, as the market has moved in the anticipated direction. CryptoBusy encourages traders to leverage this downturn by engaging in short-selling strategies, taking advantage of the ongoing market conditions.
Dogecoin on the Verge of a Bullish Breakout: AnalysisAt press time, dogwifhat (WIF) is priced at $1.23, with a 24-hour trading volume of $854,191,751. This represents a 21.40% price decline in the last 24 hours and a 51.60% decline over the past seven days. The circulating supply of WIF is 1 billion, giving it a market cap of $1,207,597,090. With a 52.50% decline in the past seven days, WIF is underperforming compared to the global cryptocurrency market, which is down 23.30%. Additionally, WIF is underperforming compared to similar meme cryptocurrencies, which are down 35.80%.
