This week, the dog-themed sensation Dogwifhat (WIF) has recovered from its drop under the $2 help zone. The Solana-based memecoin flipped Ethereum’s Layer-2 (L2) Arbitrum (ARB) and is at the moment testing the $2.5 resistance stage. Nevertheless, a crypto analyst has warned buyers of a doable retrace for WIF.
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WIF Places Its Hat Again On
Dogwifhat turned the memecoin sensation of 2024’s first quarter (Q1), giving returns of over 2,000% earlier this yr. The Solana token reached an all-time excessive (ATH) of $4.8 in March however has declined 45% since then.
Regardless of this, buyers stay bullish on the memecoin, some stating it has proven power via its sharpest correction. Asad Saddique, Cryptonary’s CTO, highlighted that the token “withstood like 5 or 6 corrections of >70%.” To Saddique, Dogwifhat solidified throughout the retraces and “challenges” for the dog-themed memecoin throne.
Notably, WIF flipped Arbitrum because the thirty eighth largest cryptocurrency by market capitalization at this time with a $2.5 billion market cap. This feat was first achieved on March 31, when WIF reached its ATH and a market cap of $4.57 billion.
A month in the past, crypto dealer Bluntz, who made a number of bullish forecasts for WIF throughout Q1, shared a bearish prediction for the memecoin. Per the dealer, the Solana token was set to an “inevitable” fall to the $1 vary.
Nevertheless, this prediction was primarily based on a earlier bullish evaluation. Bluntz acknowledged that WIF was headed for a big retrace earlier than the subsequent parabolic run, which may result in a brand new ATH.
Following the market downturn, the dog-themed memecoin noticed a worth discount of over 43%. Earlier this month, WIF dropped from the $2.6 worth vary to as little as $1.51 on July 11.
Nonetheless, it had a outstanding efficiency this week. The token reclaimed the $2 help zone and reveals inexperienced numbers in a number of timeframes.
Will It Shred One other 40% Quickly?
WIF surged 8% within the final 24 hours and trades at $2.54, on the time of this writing. This efficiency represents a 60% and 25% worth enhance within the weekly and month-to-month timeframes.
The latest worth motion has seemingly revitalized the bullish sentiment in direction of the token. Crypto analyst Hornhairs claimed that the memecoin “appears to be like stable.” To the analyst, WIF may retest the $3 resistance stage if it holds above the $2.2 worth vary.
Nevertheless, one other market watcher has warned buyers a few potential draw back for Dogwifhat. CrediBull acknowledged that individuals are taking most altcoins’ bounces as “an indication of power, however the actuality is, alts and particularly memes are simply greater beta variations of BTC.”
To the analyst, the present bounce is “good,” however, if Bitcoin (BTC) bounces or falls, Dogwifhat will comply with the flagship cryptocurrency’s motion “tougher/stronger.
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The memecoin “left a triple backside proper under us” after making a decrease excessive on greater timeframes. This implies to the dealer that the token “is prone to comply with with a 40% transfer again down of its personal to take these triple lows.”
Featured Picture from Unsplash.com, Chart from TradingView.com