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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
Dogwifhat Price Analysis: Why $3 Barrier Critical for Trend Reversal
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.
The price of $WIF dropped 15% as the market fell.
A whale deposited 900K $WIF($1.64M) to #Bybit 10 hours ago, leaving 974K $WIF($1.76M).https://t.co/qJwlxcWy15 pic.twitter.com/amIkvwKfNG
— Lookonchain (@lookonchain) July 4, 2024
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.
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.
Frequently Asked Questions (FAQs)
1. What is a double bottom pattern in technical analysis?
2. What is a whale sell-off?
3. What is a RSI (Relative Strength Index) Indicator?
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