Dogwifhat (WIF) is facing more bearish pressure after experiencing a key rejection at the $2.13 resistance level. This rejection marks an important moment, lowers the price and indicates a possible further loss of the cryptocurrency.
Market analysts and investors are closely watching this development, as the inability to break the $2.13 barrier underlines the existing selling pressure. As WIF navigates this challenging phase, the focus is on identifying the next levels of support and understanding the broader market implications of this downward trend.
The main objective of this study is to determine whether the current price action of WIF will stabilize at key resistance levels or continue to decline. Currently, WIF’s market capitalization is over $2 billion, with a trading volume of over $556 million. The price of the cryptocurrency is currently down by 3.45%, trading around $2.04, while its market cap and trading volume are currently up by 0.44% and 30.66% respectively.
Market Analysis: Impact of Rejection of $2.2
On the 4-hour chart, the price of WIF started to move slightly below the 100-day Simple Moving Average (SMA) after rejection at $2.2. It can be seen that after the rejection, the price started to build momentum before falling.
The 4-hour chart Relative Strength Index (RSI) shows a bearish trend in WIF as the signal line of the indicator has started to move down towards the 50% level.
Also, the WIF price on the 1-day chart is currently below the 100-SMA. This bearish movement, as noted on the chart, started immediately after the price received a rejection at $2.2, which is now a resistance level.
Furthermore, the 1-day RSI of the WIF signal range is extended to firm. Since the signal line in this case is still active below 50%, the price of the crypto asset may fall further.
It should be noted that with the formation of the WIF price actions and that of the RSI indicator, the WIF price may continue to fall to the $1.47 support level.
Where will WIF find stability?
As the price of WIF prepares for further declines, there are key support levels that it may want to establish. If the coin finds stability at the support level of $1.47, it will start moving higher and towards the resistance level of $2.25. A break above this level may trigger WIF to move higher to test the $3.58 resistance level and may move further to test other higher levels.
However, if WIF fails to find stability at the $1.47 support and a break below, it will continue to decline to the $0.71 support level. The crypto asset may fall further to the $0.26 support if the aforementioned level is breached.
