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 presently testing the $2.5 resistance stage. Nonetheless, a crypto analyst has warned buyers of a potential retrace for WIF.
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WIF Places Its Hat Again On
Dogwifhat grew to become the memecoin sensation of 2024’s first quarter (Q1), giving returns of over 2,000% earlier this 12 months. 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 energy 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 through 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.
Nonetheless, 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 value discount of over 43%. Earlier this month, WIF dropped from the $2.6 value 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 displays 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% value improve within the weekly and month-to-month timeframes.
The latest value motion has seemingly revitalized the bullish sentiment in the direction of the token. Crypto analyst Hornhairs claimed that the memecoin “seems strong.” To the analyst, WIF may retest the $3 resistance stage if it holds above the $2.2 value vary.
Nonetheless, one other market watcher has warned buyers a couple of potential draw back for Dogwifhat. CrediBull acknowledged that individuals are taking most altcoins’ bounces as “an indication of energy, however the actuality is, alts and particularly memes are simply larger beta variations of BTC.”
To the analyst, the present bounce is “good,” however, if Bitcoin (BTC) bounces or falls, Dogwifhat will observe the flagship cryptocurrency’s motion “more durable/stronger.
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The memecoin “left a triple backside proper under us” after making a decrease excessive on larger timeframes. This suggests to the dealer that the token “is more likely to observe with a 40% transfer again down of its personal to take these triple lows.”
Featured Picture from Unsplash.com, Chart from TradingView.com
