Dogwifhat (WIF), the once booming memecoin featuring a Shiba Inu sporting a beanie knitting style, finds itself in hot dog water. After an uptick in weather earlier this year, WIF has been on a downward trend, locked in a descending channel since late May. Analysts are keeping tabs carefully as the canine crypto approaches a key support level, with its future depending on the tug of war between bullish and bearish forces.
Related Reading
Declining Price Ladder: A Sign of Weakness?
Technical analysis paints a worrying picture for WIF. A descending channel pattern, characterized by lower highs and lower lows, indicates continued selling pressure. The price has dropped by an incredible 30% since the end of May, currently hovering around the important mark of $2.44. In the last week, WIF has lost 15% of its value, data from Coingecko shows.
This level represents the make or break point for WIF. If the bulls – those investors who are hoping for a price increase – cannot defend this support line, the price could fall further, possibly reaching a new low of $1.93.
Technical Tailspin
Adding fuel to the bearish fire is the Aroon Down indicator, a technical tool that measures the strength of the downtrend. WIF’s Aroon Down Line is sitting at around 100%, indicating a strong and recent downtrend that has occurred in the recent past. This suggests that selling pressure is outweighing any potential buying activity among WIF holders.
Will the Bulls Rise to the Event?
A glimmer of hope still remains for WIF devotees. If the bulls can hold the current support level, a retracement of the price to the $2.70 resistance line is a possibility. This would be a temporary pullback, but it would give memecoin a chance to rally and potentially break free from a bearish channel.
However, breaking support can be a devastating blow, potentially leading to a domino effect where investors lose confidence and flee the market, sending WIF into trouble.
WIF Price Forecast
Related Reading
Meanwhile, Dogwifhat’s current technical analysis shows bearish sentiment, despite bullish price predictions of a 225% increase to $7.87 on July 15, 2024. The Fear & Greed Index shows high greed at 74, which suggests potential measurement. Over the past 30 days, Dogwifhat has had 30% green days and 11.82% price volatility, indicating significant price volatility.
High volatility and the current feeling of greed indicate potential risks, despite the optimistic forecast. Therefore, it may not be the best time to buy Dogwifhat until market conditions stabilize or more positive indicators emerge.
Featured image from Reductress, chart from TradingView
Source link
