Dogwifhat (WIF), the once-booming memecoin featuring a Shiba Inu sporting a stylish knitted hat, finds itself in hot dog water. After a meteoric rise earlier this year, WIF is in a downward spiral, trapped inside a descending channel since late May. Analysts are carefully monitoring as the crypto dog approaches a critical support level, with its future depending on a tug of war between bullish and bearish forces.
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Moving Down the Price Ladder: A Sign of Weakness?
Technical analysis paints a worrying picture for WIF. The descending channel pattern, characterized by lower highs and lower lows, indicates sustained selling pressure. The price has plummeted a staggering 30% since the end of May, currently hovering around the crucial $2.44 mark. In the last week, WIF lost 15% of its value, data from Coingecko shows.
![WIF Price Drops 15% – Will Free Fall Continue? 1 A 57febe](https://thegurumedia.com/wp-content/uploads/2024/06/A_57febe.png)
This level represents a turning point for WIF. If bulls – those optimistic investors who expect a price increase – fail to defend this support line, the price could fall further, potentially reaching a new low of $1.93.
A technical twist
Adding fuel to the bearish fire is the Aroon Down indicator, a technical tool that measures the strength of a downtrend. WIF’s Aroon Down Line is at a worrying 100%, signifying a robust downtrend, with the most recent low occurring not long ago. This suggests that selling pressure is crushing any potential buying activity among WIF holders.
Will the bulls rise to the occasion?
A glimmer of hope remains for WIF devotees. If the bulls manage to hold the current support level, a price recovery towards the resistance line at $2.70 is a possibility. This would be a temporary reprieve, but it would offer an opportunity for memecoin to regroup and potentially break free from the descending channel.
However, breaking the devastating support would be a blow, potentially leading to a domino effect where investors would lose confidence and flee the market, sending WIF into a downward spiral.
WIF Price Forecast
![WIF Price Drops 15% – Will Free Fall Continue? 3 A 6c9ee4](https://thegurumedia.com/wp-content/uploads/2024/06/A_6c9ee4.png)
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Meanwhile, current technical analysis for Dogwifhat shows a bearish feeling, Despite an optimistic price prediction of a 225% increase to $7.87 on July 15, 2024. The Fear and Greed Index indicates high greed at 74, suggesting potential overvaluation. Over the past 30 days, Dogwifhat has had 30% green days with price volatility of 11.82%, reflecting significant price fluctuations.
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 additional positive indicators emerge.
Featured image from Reductress, chart from TradingView