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.

El Salvador’s Legislative Assembly approved reforms to the nation’s Bitcoin Law, altering key aspects of its applicability.

Bitcoin remains a recognized asset in El Salvador, although this development effectively weakens its official classification as legal tender.

Key Amendments to El Salvador Bitcoin Law

With 55 votes in favor, lawmakers eliminated the requirement for economic agents to accept Bitcoin (BTC). They also removed the state’s role in providing infrastructure for its use and erased references to Bitcoin as legal tender.

“With 55 votes in favor, we reform the Bitcoin Law to improve its applicability,” El Salvador’s Legislative Assembly announced.

The reforms notably eliminate mandatory Bitcoin acceptance, making its use voluntary for private sector participants. This marks a significant departure from the original law, which mandated businesses to accept Bitcoin as a payment method. Additionally, the state will no longer facilitate Bitcoin transactions through mechanisms such as the Chivo Wallet.

“…only natural or legal persons, with full private participation, may accept Bitcoin as a form of payment when it is offered to them,” the report said, citing Article 7.

It entailed the repealing of Articles 4, 8, and 9, which had allowed tax payments in Bitcoin. These clauses also required the government to provide infrastructure for Bitcoin-to-dollar convertibility.

The changes align with an agreement with the International Monetary Fund (IMF) for a $1.4 billion loan intended to strengthen fiscal sustainability. Government debt obligations must now be settled in the currency in which they were originally contracted, further reducing Bitcoin’s role in national financial matters.

IMF Agreement and Economic Considerations

Indeed, the IMF’s loan agreement with El Salvador played a crucial role in shaping these reforms. In December 2023, the Salvadoran government committed to scaling back Bitcoin’s mandatory use and reducing its involvement in Bitcoin-related infrastructure.

These legislative changes reflect the broader sentiment of El Salvador’s population. Local media reported a recent survey, which revealed that 92% of citizens did not use Bitcoin in transactions throughout 2024.

“Various studies by reputable pollsters in El Salvador have indicated that 92% of the population did not use Bitcoin in 2024, the year in which it recorded its lowest use since 2021,” the report said.

Despite these regulatory shifts, El Salvador continues to engage with Bitcoin on multiple fronts. The country expanded its Bitcoin reserves a week before the reforms, signaling its long-term commitment to the digital asset. Additionally, El Salvador has been eyeing discounted Bitcoin acquisitions amid the US government’s planned $6.7 billion BTC sale.

Bitcoin has also brought economic benefits to El Salvador. Three months ago, the government leveraged Bitcoin’s price surge to repurchase national debt, strengthening its fiscal position.

“We promised to eliminate the Political Debt. People complained to us that we had not yet fulfilled our promise. It took us a while, but we listened to the people, and today we are delivering. No more financing of political parties with the people’s money,” El Salvador president Nayib Bukele said in an X post.

These moves highlight the administration’s strategic approach to utilizing Bitcoin while adapting to international financial pressures. Meanwhile, El Salvador continues to attract major crypto firms. Stablecoin issuer Tether recently relocated to the country after securing a significant license.

“Today a meeting that will change the course of history happened. Great minds around a table in El Salvador,” Tether CEO Paolo Ardoino shared on X.

Additionally, video platform Rumble is reportedly considering moving its operations to El Salvador. These highlights cement the country’s appeal as a crypto-friendly jurisdiction.

While the state’s role in Bitcoin adoption diminishes, private sector involvement remains active. Similarly, the country’s strategic Bitcoin acquisitions continue. As the IMF agreement progresses and crypto firms establish operations in El Salvador, the nation’s Bitcoin experiment remains a focal point for global financial and cryptocurrency markets.

Since January 17, Hedera (HBAR) has been on a downward trajectory, shedding 20% of its value as selling pressure intensifies. The altcoin has since traded below a descending trendline, indicating persistent bearish sentiment in the market.

As demand for the altcoin continues to plummet, HBAR risks extending its price drop. This analysis has the details.

Hedera Bears Overrun Market

BeInCrypto’s assessment of HBAR’s price performance on a daily chart reveals that the altcoin has traded below a descending trendline since January 17. The token trades at $0.31 at press time, noting a 20% price decline since then.

A descending trendline is a bearish pattern that connects a series of lower highs in an asset’s price movement, indicating a consistent downtrend. When an asset trades below this trendline, it suggests that the price is under bearish pressure and the prevailing market sentiment is bearish.

Readings from HBAR’s Awesome Oscillator (AO) confirm this prevailing bearish sentiment. For context, this momentum indicator has posted only red histogram bars since January 21, indicating that HBAR has been trailed by negative bias for a while. 

An asset’s AO measures market momentum by comparing the difference between two simple moving averages (SMA) of an asset’s price. When its bars are red, it indicates a shift towards bearish momentum, suggesting that sellers are gaining strength and the market may be poised for further downside.

HBAR Price Prediction: Token Under Threat of 18% Decline to $0.26

If sellers retain market control, HBAR risks falling 18% to trade at $0.26. According to its Fibonacci Retracement tool, if selloffs increase at this point, that support level may not hold, and the token’s price could drop further to $0.22.

However, a positive shift in market sentiment could prevent this from happening. If HBAR witnesses a spike in buying pressure, its price could rebound and climb toward its multi-year high of $0.40.