Dogwifhat (WIF): Poised for a Comeback despite Recent Downturn
[TL; DR]
The WIF price has fallen below $3.50, a key support level.
The WIF community is working hard to prop up the falling meme coin price.
If WIF bulls sleep on duty its price may reach $2.0 within the next few weeks.
Introduction
Several meme coins that include Dogwifhat, Bonk, PEPE and Floki rallied during the first quarter of the year. However, they have not been performing in the same manner during the second quarter. In fact, most cryptocurrencies have a bearish outlook, something that the market has not expected considering that the Bitcoin halving event which normally triggers a bullrun occurred in April.
Some analysts, though, believe that the current market correction that started after the bitcoin halving will not last long. This analysis discusses DogWifHat’s potential to rally again during the remainder of the year.
Dogwifhat Price Greatly Depressed: Will the Memecoin Stage a Comeback?
Some crypto experts have suggested that the Dogwifhat memecoin is at a critical point due to its recent price downswing. They have said that WIF may experience a catastrophic crash if its value continues to plummet at the current rate. Posting on X Crypto Jack, a popular crypto analyst and trader, said that WIF’s value should be above $3.5 to give hope to the market. The following image shows Crypto Jack’s sentiment.
Source: x.com
Crypto Jack gave his comments following a 10% WIF price decline that occurred on 31 May. At the time Crypto Jack showed the above sentiment WIF had just broken out of a symmetrical triangle formation. What the market needed at that time was more investment in the meme coin to prevent a further price drop. The next diagram shows WIF’s price as at 31 May.
DogWifHat Price Movement – CoinGecko
In the image above, the rectangle,, bordered in green, shows the price fall that occurred on 31 May. As you note, the WIF price has dropped further since that time. At the moment it is trading at $2.70, hovering in what Crypto Jack has called the danger zone.
Based on the WIF price analysis the 10% decline came after the meme coin had a 27% increase within the previous 7 days, showing a decline in the meme coin bullishness. Significantly, that Dogwifhat rally made it one of the best crypto performers during that period. Still, many optimistic investors hope that the WIF price will soon rise and get out of the danger zone.
It is also essential to realize that the altcoin performance is concerning although many other meme coins are in the red. For example, the price of BONK dropped by 14% during the past 7 days.
Despite Crypto Jack’s alarm pertaining to WIF, “Ponzi Trader,” a pseudonymous crypto trader, believes that there will be a WIF price recovery soon. As per a recent Cointelegraph publication, Ponzi Trader said, “I’m betting on a WIF bounce here.”
However, WIF’s continued price fall is in line with what another crypto trader and analyst, CrediBULL, predicted two weeks ago. He said that the WIF bearish momentum will continue until its price falls below $1.16. By that time, CrediBULL, an optimistic WIF investor, said that he intended to short WIF once its price dropped to $3.90. Looking at its prevailing market price and conditions CrediBULL’s prediction was almost correct. This is because WIF has been in a downtrend for the past two weeks and it is targeting the next two support levels at $2.60 and $2.50.
Dogwifhat Holders Remain Optimistic - WIF’s failure to close above $4.00
In spite of the recent WIF price discount the meme coin market sentiment remains positive. The WIF’s community members have been promoting the memecoin in various ways. Recently, the community showed their loyalty and enthusiasm when they showcased the WIF logo in the Las Vegas Sphere where they got $650,000 in donations. That has not been the first time the WIF community sought financial support for their beloved meme coin. By 31 May they had raised more than $704,989.
Read also: Is It Too Late to Buy DogWifHat?
WIF Price Analysis: Technical Indicators Show a Future Bullish Outlook
The WIF price drop has become a major concern within the meme coin community since the investors were expecting it to rise to $4.00. If it has surpassed that level it could be heading towards a new all-time high. Its present all-time high is $4.83, attained on 31 March this year. At its current value the token is trading at 44.5% lower than that ATH.
Also, as of 31 May the average directional index ADX indicated a potential bullish period in the coming weeks. By that time, its reading was above 25. As a fact, the ADX scale ranges between 0 and 100. A reading below 25 indicates a bearish outlook. On the other hand, an ADX reading of 25 or above indicates a bullish outlook.
Similarly, at a price of $3.49, WIF was above its 50-day exponential moving average which is a strong support level. A drop below the 50 WIF exponential moving average would indicate a strong bearish momentum. On the other hand, if the WIF price rises above $4.00 its next key resistance level will be $4.22. If it fails to breach the $4.00 and $4.22 levels, a downturn can force its price to drop below $3.62. From there, it is likely to fall further to $3.10, its 500-day EMA.
WIF Price Prediction: Awaiting Recovery
Without doubt, the price of WIF is very worrisome. Since it is changing hands at $3.60 there is a danger that it may drop further to retest $2 which is the next psychological barrier. Despite its current poor price performance, analysts believe that the WIF price will reach new highs within the next few weeks. Based on the present cryptocurrency trends, CoinCodex forecasts the WIF price to reach $8.57 in July.
Conclusion
The crypto market anticipates the WIF price to rise during the next few weeks. As said, CoinCodex predicts its price to reach $8.57 in July. Nevertheless, its price performance will also depend on how the rest of the crypto market fares. If the worst scenario unfolds the WIF price may drop below the next lower psychological level, $2.
