On November 13, Dogwifhat (WIF) active addresses rose to 17,000. However, as of this writing, that number has dropped almost fivefold, indicating that interest in the meme coin has decreased.

This decline also coincided with WIF’s price decrease from $4.20. Here is a thorough analysis of how the decrease in active addresses could affect the meme coin’s value in the short term.

Dogwifhat Network Activity Drops

WIF’s price rallied above $4 on the same day that active addresses climbed to the highest level since March 14. This hike implies that user engagement was vital to the meme coin’s bullish performance.

As of now, daily WIF active addresses for the Solana meme coin have plummeted to 3,692, signaling a sharp decline in wallet activity compared to just a week ago. This drop suggests a waning interest in transactions involving the coin. 

Historically, such a decline in active addresses has been a bearish indicator, often signaling reduced momentum and potential price weakness ahead. So, it is not surprising that WIF’s price could not hold the $4 support and is now trading at $3.27.

Another metric suggesting that WIF might fail to rebound to $4 quickly is the weighted sentiment. This metric measures the perception market participants have about a token.

When the reading is positive, the Weighted Sentiment implies that most comments online about a project are bullish. On the other hand, if the metric’s reading is negative, it means that the average remark about the asset is bearish.

In WIF’s case, it is the latter. If this remains the same, then the Solana meme coin’s value could drop lower than $3.27 in the short term.

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Author: Victor Olanrewaju