Dogwifhat (WIF), once-booming memecoin with a Shiba Inu sporting a chic knitted beanie, finds itself in hot dog water. Originally rising rapidly earlier this year, WIF has been on a downward spiral caught in a descending channel since late May. With its future depending on a tug-of- war between positive and bearish forces, analysts are closely monitoring as the canine crypto approaches a vital support level.
Descending The Price Ladder: A Sign Of Weakness?
Technical study presents alarming picture for WIF. Lower highs and lower lows define the declining channel pattern, which shows constant selling pressure. Since the end of May, the price has dropped an amazing thirty percent; it now rests around the vital $2.44 mark. WIF lost 15% of its value last week, according to Coangecko statistics.
For WIF, this level marks either a make- or-break point. Should the bulls, those hopeful investors looking for a price rise, fail to defend this support level, the price may fall much more, maybe reaching a new low of $1.93.
A Technical Tailspin
Aroon Down is a technical instrument that measures the strength of a downtrend and fuels the bearish fire. With the most recent bottom not too long ago, WIF’s Aroon Down Line shows a worrisome 100%, indicating a strong downtrend. This implies that among WIF holders, sales pressure exceeds any possible purchasing activity.
Will The Bulls Rise To The Occasion?
There is yet hope for WIF followers. Should the bulls be able to maintain the current support level, a price rebound towards the resistance line at $2.70 becomes conceivable. Although this would just be a temporary fix, it would give the memecoin an opportunity to reorganise and maybe escape the declining path.
Breaking the support, however, would be a terrible blow, maybe setting off a chain reaction whereby investors lose faith and leave the market, therefore causing WIF to spiral.
WIF Price Forecast
The present technical study for Dogwifhat, meantime, displays a negative attitude despite a positive price projection of a 225% rise to $7.87 by July 15, 2024. With a high level of greed at 74 the Fear & Greed Index points to possible overvaluation. Reflecting major price variations, Dogwifhat has had 30% green days with 11.82% price volatility during the past 30 days.
Though the projection is positive, the great volatility and current greed attitude point to possible hazards. Consequently, it might not be the greatest moment to purchase Dogwifhat until the state of the market stabilises or other favourable signs show up.
Featured image from Reductress, chart from TradingView