In a case of the exuberance defying the gravity of reality, Dogwifhat (WIF), the memecoin that once wowed the crypto world with its charming symbol of a Shiba Inu donning a trendy beanie, is now in a precarious position. Earlier this year, WIF was flying high, powered by a meteoric rise that earned admiration and awe. However, as fate would have it, WIF is now languishing in a stubborn and crippling downward spiral that began to strangle the crypto in late May.
Market analysts, their eyes sharpened by experience and knowledge, have parked their attention at the doorstep of the faltering crypto which is fast approaching a decisive and critical support level. A battle of epic proportions is on the horizon, a tug-of-war between the overpowering bears and relenting bulls.
As is often the case, the signs of the impending gloom were all there for those who knew how to interpret them. The technical analysis chart for WIF, shedding light on the ever-increasing lower highs and lower lows, screamed of an overarching selling pressure. Since late May, the value of WIF has fallen by a heart-stopping 30%, its lifeblood steadily drained out by the crippling market forces. At present, the crypto’s price hovers around the vital $2.44 mark.
With the passing of each week, WIF is losing its semblance of stability. In the last week alone, it has lost 15% of its value, the steep and slippery fall illustrated in the data provided by Coingecko. What lies at stake, at the crucial price point of $2.44, is the survival game of WIF. If the bulls, who rightly or wrongly still harbor hopes of price increase, stumble in defending this price line, a horrifying price dive might be the next chapter, with the possibility of touching a record low of $1.93.
The gloom that looms over WIF is exacerbated by the Aroon Down indicator. This tool, known and revered for its accuracy in determining the strength of a downtrend, has raised a red flag for WIF – 100% strength of a downtrend, signifying a recent low and surging selling pressure suppressing any buying attempts.
Alas, in this cloudy scene, a silver lining is discernible for the steadfast proponents of WIF. If the bulls, against the odds, turn the tide and hold the current support level, a rebound towards the resistance line at $2.70 wouldn’t be off the table. Even though this would be a temporary respite, it might just offer the memecoin an opportunity to regroup and make an audacious break for freedom from the descending channel.
On a side note, the Fear & Greed Index for WIF sends another warning – a high greed at 74, implying a potential overestimation of the crypto’s value. Over the last 30 days, the market has seen 30% green days for WIF, at the high price volatility of nearly 12% reflecting the memecoin’s dramatic price changes.
Add to this, the current technical analysis nudging the latent bearish sentiment. Despite an optimistic forecast of a whopping 225% increase to $7.87 by July 15, 2024, the market might hold its breath and think twice before investing in Dogwifhat until the storm settles.
