Once-thriving memecoin Dogwifhat (WIF), with a Shiba Inu in a chic knitted beanie, is in serious financial hot water. Since late May following an incredible ascent earlier this year, WIF has been locked in a downward trend that concerns experts as it approaches a vital support level.
The destiny of this canine-themed bitcoin will depend on the balance between optimistic and negative market elements.Recent technical study points up a concerning WIF trend. Consistent selling pressure is shown in the declining channel pattern, which features ever lower highs and lows.
Dogwifhat Significant Price Drop
WIF’s price dropped by thirty percent late in May, currently hovering around the pivotal $2.44 line. Cogecko data shows WIF has dropped 15% of its value during the previous week alone.WIF depends much on this $2.44 level. Should optimistic investors fail to sustain this support, the price might drop much more and maybe hit a new low of $1.93.
The Aroon Down indicator, which gauges the strength of a down trend, aggravates the negative view. With a worrisome 100%, WIF’s Aroon Down Line shows a significant downturn with recent lows that signal selling pressure is overwhelming any purchasing activity.
For WIF aficioners, there is a sliver of optimism despite these obstacles. Should the bulls be able to protect the present support level, a rebound toward the resistance line at $2.70 is conceivable. This could offer a little break so the memecoin may reorganize and maybe escape the descending channel. A violation of this support, however, might cause investor confidence to erode, resulting in a market exodus and even more price fall.
Though with a bullish estimate of a 225% increase to $7.87 by July 15, 2024, current technical study shows Dogwifhat a negative image. The Fear & Greed Index shows extreme avarice at 74 that would signal possible overvaluation. Dogwifhat has experienced 30% green days with 11.82% price volatility over the previous 30 days, reflecting somewhat significant price fluctuations.
Given the huge volatility and overall avarice, risks are really high. Potential investors should be urged to wait until the status of the market stabilizes or more positive indicators show before considering investing in Dogwifhat.
