Dogwifhat （WIF） experiences a 60% surge, flipping key support levels, but analysts warn of a potential retrace due to market dynamics and resistance levels.
Points
- Dogwifhat （WIF） price surged 60% this week.
- Flipped key support levels and tested resistance.
- Potential retrace predicted by analysts.
- Previous bullish forecasts and recent performance.
- Investors should be cautious of market corrections.
This week, the dog-themed sensation Dogwifhat （WIF） has recovered from its drop below the $2 support zone. The Solana-based memecoin flipped Ethereum’s Layer-2 （L2） Arbitrum （ARB） and is currently testing the $2.5 resistance level. However, a crypto analyst has warned investors of a possible retrace for WIF.
WIF Puts Its Hat Back On
Dogwifhat became the memecoin sensation of 2024’s first quarter （Q1）, giving returns of over 2,000% earlier this year. The Solana token reached an all-time high （ATH） of $4.8 in March but has declined 45% since then. Despite this, investors remain bullish on the memecoin, with some stating it has shown strength through its sharpest corrections. Asad Saddique, Cryptonary’s CTO, highlighted that the token “withstood like 5 or 6 corrections of >70%.” To Saddique, Dogwifhat solidified during the retraces and “challenges” for the dog-themed memecoin throne.
Notably, WIF flipped Arbitrum as the 38th largest cryptocurrency by market capitalization today with a $2.5 billion market cap. This feat was first achieved on March 31, when WIF reached its ATH and a market cap of $4.57 billion. A month ago, crypto trader Bluntz, who made several bullish forecasts for WIF during Q1, shared a bearish prediction for the memecoin. Per the trader, the Solana token was set for an “inevitable” fall to the $1 range.
However, this prediction was based on a previous bullish analysis. Bluntz stated that WIF was headed for a large retrace before the next parabolic run, which could lead to a new ATH. Following the market downturn, the dog-themed memecoin saw a price reduction of over 43%. Earlier this month, WIF dropped from the $2.6 price range to as low as $1.51 on July 11.
Will It Shred Another 40% Soon?
WIF surged 8% in the last 24 hours and trades at $2.54 at the time of this writing. This performance represents a 60% and 25% price increase in the weekly and monthly timeframes. The recent price action has seemingly revitalized the bullish sentiment towards the token. Crypto analyst Hornhairs claimed that the memecoin “looks solid.” To the analyst, WIF could retest the $3 resistance level if it holds above the $2.2 price range.
However, another market watcher has warned investors about a potential downside for Dogwifhat. CrediBull stated that people are taking most altcoins’ bounces as “a sign of strength, but the reality is, alts and especially memes are just higher beta versions of BTC.” To the analyst, the current bounce is “nice,” but if Bitcoin （BTC） bounces or falls, Dogwifhat will follow the flagship cryptocurrency’s movement “harder/stronger.”
The memecoin “left a triple bottom right below us” after making a lower high on higher timeframes. This suggests to the trader that the token “is likely to follow with a 40% move back down of its own to take those triple lows.”
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解説
- Dogwifhat’s （WIF） recent price surge reflects the volatile nature of memecoins and the influence of market sentiment. While the significant increase in price and market cap is encouraging, it also warrants caution due to the potential for sharp corrections.
- Historical patterns in WIF’s price movements, including multiple >70% corrections, indicate that investors should be prepared for volatility. The ability to recover from these corrections showcases the token’s resilience, but it also highlights the need for strategic planning and risk management.
- The mixed forecasts from analysts underscore the uncertainty in predicting memecoin trends. While some see potential for further gains, others warn of a significant retrace, emphasizing the importance of monitoring market conditions and sentiment closely.
- The correlation between Dogwifhat and Bitcoin’s （BTC） movements suggests that broader market dynamics will influence WIF’s price. Understanding this relationship can help investors anticipate potential price changes and adjust their strategies accordingly.
- Overall, while Dogwifhat’s performance has been impressive, investors should remain vigilant and consider both bullish and bearish scenarios. Staying informed about market trends and expert opinions will be crucial in navigating the memecoin’s future price movements.