WIF is experiencing a sharp decline after a significant deviation, marking a notable change in its price action. Analyst Nebraskangooner highlighted this deviation, where the price briefly spiked above the moving averages before reversing sharply. At the time of writing, WIF price stands around $1.90, down 3.31% for the day, highlighting a bearish trend that has persisted for some time.
Following the deviation, the price began a downward trajectory. The peak around $2.80, marked during the deviation, was unsustainable. This was followed by a rapid decline to the current level of $1.90. Throughout this period, volume activity surged, indicating substantial trading interest during the deviation. However, as the price reversed, the volume tapered off, reflecting diminished buying interest. This shift in volume suggests a weakening momentum, contributing to the ongoing bearish sentiment.
Analyzing the technical indicators reveals critical support and resistance levels. The $2.80 level acted as a significant resistance that the price could not sustain. The price near $1.90 might be approaching a support level, though caution is advised due to the prevailing downtrend.
Dogwifhat Faces Volatility: Analysts Predict a Potential DipAt the same time, analyst CryptoJack anticipates a retest of the $1.5 support level. This level, marked as a strong support area, has previously acted as a floor for the price, indicating substantial buying interest. The $2.0 level also plays a crucial role, providing additional support that could influence the price trajectory.
The recent market performance of WIF has been underwhelming. With a 24-hour trading volume of $701,288,563, WIF has experienced a -6.32% price decline in the last 24 hours and a -25.61% decline over the past seven days.
This performance is notably worse than the global cryptocurrency market, which is down -5.50%, and similar Meme cryptocurrencies, down -7.70%. Despite this, there was a noticeable bounce from mid-July, suggesting a potential trend reversal. This bounce is crucial as it might signal the end of the downtrend and the beginning of a new upward movement.
Looking at the technical end, the price is approaching the lower Bollinger Band at $1.791, suggesting potential oversold conditions. Additionally, the RSI reading of 38.08 reinforces this, indicating that the asset is nearing the oversold territory.
Typically, when an asset nears the lower Bollinger Band and the RSI trends towards oversold levels, it suggests a possible rebound or consolidation phase. Therefore, traders should watch for a potential bounce from the support level around $1.791. A confirmed reversal could present a buying opportunity, especially if accompanied by a decrease in selling volume.
