Solana-based meme coin dogwifhat (WIF) has recently faced a significant setback, with a 33% drop in its value over the past week, landing it at a low not seen since February 2024.

Both on-chain data and technical indicators are pointing towards a diminishing interest in this meme coin, hinting that its downward trajectory might persist in the near term.

The decline in WIF's demand is evident from analyses of the WIF/USD one-day chart, with the On-Balance-Volume (OBV) plummeting by 285% in just seven days to hit -398.94 million. A falling OBV signifies a scenario where selling pressure surpasses buying pressure, with more traders opting to sell the asset rather than hold onto it.

As the OBV continues to drop alongside the price decrease, it solidifies the bearish sentiment surrounding WIF and suggests a possible continuation of its price decline.

Moreover, the open interest associated with WIF has been on a downward trend since the beginning of February, declining by 42%. A decrease in open interest during a price dip implies that traders are exiting their positions rather than entering new ones, indicating reduced market involvement and a potential prolongation of the downtrend unless fresh interest emerges.

Regarding price predictions, the readings from WIF's Awesome Oscillator (AO) also align with the fading demand for this altcoin. The indicator's red downward-facing histogram bars signal a significant selling pressure, hinting at a potential extension of the bearish momentum.

While there's a possibility of WIF's price plunging further to $0.55, marking a 30% drop from its current value, a resurgence in demand could push the meme coin past the $0.92 resistance level towards $1.89.