• 19 June, 2024
Market News News

WIF Faces Crucial Test: Can It Bounce Back from Recent Lows?

After breaking through its critical support level at $3.18, Dogwifhat (WIF), a Solana-based meme coin, experienced a significant downturn last Friday. This signaled a bearish market phase that might include a transient rally. WIF’s price fell sharply by 20%, indicating a potential short-term correction within a broader downward trend.

The phenomenon, known as a dead cat bounce, suggests a minor recovery could temporarily uplift the WIF price between the narrow range of $3.15 and $2.88. Such a rally could bring the price to an intermediate high of approximately $3.01 before facing potential resistance. If this price level cannot be sustained, WIF might see a decline of about 16%, revisiting the lower support boundary at $2.52.

The Relative Strength Index (RSI) corroborates this outlook, resting near 36, slightly above the oversold marker at 30. This metric hints that although the selling momentum is intense, a slight easing could foster a brief price rebound before continuing the downtrend.

WIF/USDT chart: TradingView

Conversely, a positive shift in market sentiment that propels a daily closing above $3.18 could signal a shift in market dynamics, forming a higher low on the chart. This alteration in the market structure could dispel the prevailing bearish sentiment and potentially catalyze a 6% rise in WIF’s value, reaching a peak of $3.35.

Shiba Inu Sees Mixed Performance, Dogwifhat Rises Sharply

As of press time, WIF is exchanging hands at $2.75, up by more than 2% in the daily chart. Despite the bullish resurgence, WIF has been trading on a bearish note according to the weekly and monthly charts, recording a decline of 20% and 8%, respectively. 

WIF’s market capitalization and daily trading volume are on the rise, standing at $2.74 billion and $396 million, a surge of 2% and 1%, respectively. Moreover, WIF’s daily low and high are at $2.66 and $2.81, respectively.

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