Dogwifhat (WIF) is facing increasing bearish pressure after facing significant rejection at the $2.13 resistance level. This rejection marks a pivotal moment, pushing the price lower and signaling potential continued losses for the cryptocurrency.
Market analysts and investors are closely monitoring this development, as the inability to break the $2.13 barrier underlines the prevailing selling pressure. While WIF navigates this challenging phasethe focus shifts to identifying upcoming support levels and understanding the broader implications of this downward trend in the market.
The main objective of this study is to determine whether the current price action of WIF will stabilize at significant resistance levels or continue to decline. Currently, the market capitalization of WIF is over $2 billion, with a trading volume of over $556 million. The cryptocurrency’s price is currently down 3.45%, trading at around $2.04, while its market cap and trading volume are currently up 0.44% and 30.66%, respectively.
Market Analysis: The Impact of the $2.2 Rejection
On the 4-hour chart, the WIF price started a bearish move below the 100-day simple moving average (SMA) after the rejection at $2.2. It can be seen that after the rejection, the price started gaining momentum before falling.
The Relative Strength Index (RSI) on the 4-hour chart signals a bearish move for WIF as the indicator’s signal line has started to decline towards the 50% level.
Furthermore, WIF price on the 1-day chart is currently trading lower below the 100-SMA. This bearish movement, as seen on the chart, started immediately after the price suffered a rejection at $2.2, which is now a resistance level.
Furthermore, the 1-day RSI for WIF price signals an extended downtrend. As the signal line in this case is still active below 50%, the price of the crypto asset could fall further.
It should be noted that with the formation of WIF price action and the RSI indicator, the WIF price may continue to decline towards the $1.47 support level.
Where will WIF find stability?
As the WIF price prepares for a further decline, there are important support levels that it may want to stabilize at. If the coin finds stability at the $1.47 support level, it will begin to climb back towards the $2.25 resistance level. A break above this level could see WIF rally to test the $3.58 resistance level and may move on to test other higher levels.
However, if WIF fails to find stability at the $1.47 support and breaks below, it will continue to decrease towards the $0.71 support level. The crypto asset could pose a further decline towards the $0.26 support if the above-mentioned level is breached.