This week, Dogwifhat (WIF) went up 60%, coming back from below the $2 support level and hitting the $2.5 resistance level. Even though it has been doing well lately, a crypto analyst has warned buyers that the price could go back down.
The hyped-up Solana-based memecoin gained over 2,000% in returns in the first quarter of 2024. It hit a high point of $4.8 in March before falling by 45%. Still, investors are still hopeful, which is helped by the fact that the token has been able to withstand significant drops.
Dogwifhat Faces Potential Correction
With a market value of $2.5 billion, WIF recently passed Ethereum’s Layer-2 Arbitrum (ARB) to become the 38th most significant cryptocurrency. When WIF hit its all-time high on March 31 and a market cap of $4.57 billion, it was the first time this goal was met.
Bluntz, a crypto trader who predicted WIF’s bullish trends earlier this year, now thinks the price could drop to the $1 range, which would mean a significant correction before another parabolic rise.
On July 11, WIF’s price dropped from $2.6 to $1.51, a drop of more than 43%. Still, it went back up to $2.54, which is an 8% increase in 24 hours. This is a 60% weekly and 25% monthly rise, which makes people optimistic again.
Hornhairs, a crypto analyst, thinks that WIF could test the $3 mark again if it stays above $2.2. CrediBull, on the other hand, says that memecoins like WIF could see significant drops if Bitcoin changes its pattern. They expect a 40% drop if Bitcoin does change its pattern.
