Dogwifhat Price Analysis Hints $3 Rally As Bullish Pattern Outshines Whale Sell-off

Dogwifhat Price Analysis: WIF shows resilience above $1.47 support amid market correction, rebounding 31.8% to $1.95. A potential double bottom pattern suggests a further rise to $2.36, followed by $3.
By Sahil Mahadik
July 6, 2024
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Dogwifhat Price

Highlights

  • Under the influence of a double bottom pattern, the WIF buyers could drive a rally of 52%.
  • The coin price moving below the daily EMAs (20, 50, and 100) accentuates the market sentiment is still bearish.
  • The 24-hour trading volume in Dogwifhat is $525 Million, indicating a 17.8% loss.

Dogwifhat Price Analysis: The first week of July has been notably bearish for a majority of major cryptocurrencies. The Bitcoin price recently corrected to $53,500, driven by liquidations from the Mt. Gox Exchange as well as the U.S. and German governments, which have extended the market correction. However, defying the supply pressure, the WIF price stood firmly above $1.47 developing a bullish reversal pattern.

Also Read: PEPE, WIF, And These Meme Coins Recovers, Where Others Failed

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Dogwifhat Price Analysis: Why $3 Barrier Critical for Trend Reversal

BINANCE:WIFUSDT Chart
Dogwifhat Price Analysis| Tradingview

Despite the recent market correction, the Solana-based memecoin Dogwifhat showed notable resilience above $1.47 support. The WIF price rebounded twice from the horizontal support within three weeks indicating the buyers aggressively defended this floor.

This $1.47 held strong amid a recent sell-off from a crypto whale as reported by on-chain data tracker Lookonchain. During the mid-week, a whale deposited 900,000 WIF, valued at approximately $1.64 million, to the Bybit exchange.

Following this transfer, the whale’s remaining balance stands at 974,000 WIF, worth around $1.76 million. Such Large transfers suggest this major investor is looking to reduce its exposure in Dogwifhat coin, possibly due to a lack of anticipation for significant price movements in the near future.

Also Read: BitMEX Wallets Mysteriously Shift 15800 Bitcoin Today, What’s Happening?

However, the latest reversal from $1.47 support has uplifted the WIF price 31.8% within two days to trade at $1.95 while the market cap surged to $1.94 Billion. A look at the 4-hour chart shows the recovery developing into a double bottom— a well-known reversal pattern often spotted at the market bottom.

Following this pattern, the WIF price could rise another 21% and challenge the $2.36. A potential breach from this resistance will provide buyers with suitable support to chase the $3 mark.

However, a review of the daily chart reveals that the $3 level closely aligns with the resistance trendline of the channel, which has shaped the market movement in WIF since late March. Therefore, for a confirmed trend reversal, buyers must successfully break above this overhead trendline.

If the resistance holds, the Dogwifhat could prolong the current correction trend.

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Technical Indicator

  • RSI: A notable higher low formation in the daily Relative Strength Index(RSI) indicates the increasing demand pressure at $1.47 support, bolstering the potential of price reversal.
  • EMAs: The 50D and 100D Exponential Moving Average slope wavering around the $2.36 neckline increases the resistance pressure against buyers.

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Frequently Asked Questions (FAQs)

1. What is a double bottom pattern in technical analysis?

A double bottom pattern is a bullish reversal pattern that forms after a downtrend and consists of two low points at nearly the same level. It resembles the letter "W".

2. What is a whale sell-off?

A whale sell-off refers to a large-scale sale of cryptocurrency by an individual or entity holding a substantial amount of the asset, often referred to as a "whale." 

3. What is a RSI (Relative Strength Index) Indicator?

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is used to identify overbought or oversold conditions.

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Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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