dogwifhat Price Bottomed? Whale Activity at $1.5 Signals Potential Reversal

dogwifhat Price: On Tuesday, the cryptocurrency market showcased ease from prevailing selling pressure as Bitcoin shows sustainability above $60000. The renewed demand pressure has sparked a relief rally in altcoin especially in the Meme coin sectors. Dogwifhat (WIF), the Solana-based memecoin records a 24% in the last 24 hours, projecting a higher potential for recovery. But will it sustain?

Also Read: Expert Analysts Predict Further Drop in Crypto Market: Bitcoin Cash, BNB, Kaspa and Rollblock Price Analysis

dogwifhat Price Eyes Key Resistance Levels in Recovery Effort

The Dogwifhat (WIF) has been under a correction trend for the last three months after its price topped $4.86. The bearish turnaround has tumbled the asset to a low of $1.47 projecting a loss of nearly 70%.

However, the broader market correction witnessed a cool-off on Tuesday, pushing the WIF price immediately to $1.9, while its market cap recovered to $1.9. The meme cryptocurrencies often show dynamic moves in a sudden change market due to their volatile nature. As per the data from coinmarketcap, the Top memecoin contributes to a market cap of $46.9 Billion, registering an 8.5% intraday gain.

According to on-chain data tracker Lookonchain, a savvy investor recently acquired an additional 938,434 WIF, valued at $1.6 million, earlier today.

https://twitter.com/lookonchain/status/1805420708920803793?ref_src=twsrc%5Etfw” rel=”nofollow

The investor’s historical activity in WIF demonstrates a keen understanding of market dynamics. On December 9 and December 13, 2023, this individual purchased a substantial 3.58 million WIF, which has a current market value of $6.6 million. 

As of now, the investor’s total holdings amount to 3.97 million WIF, equating to approximately $7.3 million.

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An oversold asset witnessing whale accumulation is poised for a quick rebound but it’s not guaranteed to be sustained. The coin holders must watch for overhead resistances of $1.95 and $2.26 as they could revive.

With the near-term trend bearish, the development of a fresh higher low or reversal pattern is needed to confirm sustainable recovery.

The coming days to week could be sideways for the Dogwifhat, as the price needs to stabilize above $1.5 psychological support.

Technical Indicator

• EMAs: A bearish crossover between the 20-50-100-day Exponential Moving Average indicates aggressive selling pressure and the path to least resistance downward.
• Relative Strength Index: The daily RSI slope reverted from the oversold region to 37% indicating increased buying pressure from investors hunting for discount value.