Dogwifhat （WIF） has surged 60% this week, but analysts caution that the memecoin could face a potential retrace due to market dynamics.
Points
- Dogwifhat （WIF） price surges 60% this week, hitting $2.5.
- Analysts warn of potential retrace due to market dynamics.
- The token flipped Arbitrum and is now testing the $2.5 resistance level.
- Investor sentiment remains bullish, but caution is advised.
This week, the dog-themed sensation Dogwifhat （WIF） has recovered impressively, surging from its drop below the $2 support zone to a 60% increase, reaching $2.5. The Solana-based memecoin has flipped Ethereum’s Layer-2 solution, Arbitrum （ARB）, and is currently testing the $2.5 resistance level. Despite this bullish momentum, analysts are warning of a potential retrace for WIF due to market dynamics.
Dogwifhat became the memecoin sensation of the first quarter of 2024, delivering returns of over 2,000% earlier this year. The Solana token reached an all-time high （ATH） of $4.8 in March but has since declined by 45%. Nevertheless, investor sentiment remains bullish, with many noting the token’s resilience through multiple significant corrections.
Asad Saddique, Cryptonary’s CTO, highlighted that Dogwifhat has “withstood like 5 or 6 corrections of >70%,” solidifying its position despite market challenges. On March 31, WIF achieved a major milestone by flipping Arbitrum as the 38th largest cryptocurrency by market capitalization, reaching $4.57 billion.
However, crypto trader Bluntz, who previously made bullish forecasts for WIF during Q1, now predicts a potential fall to the $1 range. He noted that the token might experience a large retrace before the next parabolic run, which could lead to a new ATH. This prediction was based on a previous bullish analysis, suggesting that WIF’s current rise might be followed by a correction.
In early July, WIF’s price dropped from the $2.6 range to as low as $1.51, reflecting the volatile nature of the memecoin market. Despite this, WIF has shown remarkable performance this week, reclaiming the $2 support zone and exhibiting green numbers across several timeframes.
Crypto analyst Hornhairs remains optimistic about WIF, suggesting that it could retest the $3 resistance level if it holds above $2.2. However, market watcher CrediBull advises caution, noting that altcoins and memecoins are higher beta versions of Bitcoin （BTC）, meaning they are likely to follow BTC’s movements more intensely.
CrediBull pointed out that the current bounce in WIF is promising, but if Bitcoin experiences a significant move, Dogwifhat will likely follow suit. The analyst also highlighted that WIF has “left a triple bottom right below us,” suggesting a potential 40% retrace to take out those triple lows.
解説
- Dogwifhat （WIF） has experienced a significant price surge, reflecting strong investor interest and participation.
- Despite the bullish momentum, analysts warn of a potential retrace due to market dynamics and historical price patterns.
- The token’s resilience through multiple corrections highlights its strong community support and market presence.
- Investors should remain cautious and monitor key support and resistance levels, as well as broader market trends.
- Understanding the volatile nature of memecoins and their correlation with Bitcoin can help investors make informed decisions.