Will Dogwifhat Price Lose $2 Support Amid Market Sell-off?

Dogwifhat Price: On April 13th, the cryptocurrency market extended its correction trend amid geopolitical tension in the Middle East. The FUD among market participants plunged Bitcoin price to a low $60000, while several altcoins including the Dogwifhat memecoin witnessed accelerated supply pressure. The WIF currently seeks support at the $2 psychological support to prevent further downfall.

Also Read: Crypto News: Key Events Next Week That Can Determine Bitcoin Bull Run

Dogwifhat Seeks 25% Jump as Buyers Hit Demand Pressure at $2

The first two weeks of April have been notably bearish for the Solana-based meme coin Dogwifhat. Amid the broader market correction, the WIF price reverted from a $4.86 high to a low of $1.94, registering a nearly 60% loss.

This downfall showcased a new lower high formation early this week, indicating a sign that traders are selling this asset on bullish bounces, a key behavior is established downtrend. Connecting the lower high with the trendline projects a dynamic resistance that carries the current correction trend.

However, the renewed demand pressure at the $2 psychological has uplifted the WIF price by 42% within two days to currently trade at 2.79%. This Dogwifhat’s market cap surged to $2.77 Billion resorting to its position as the 40th largest cryptocurrency.

The uptick today should bolster buyers to rechallenge the overhead trendline around $3.5, registering a potential growth of 25%.

However, the buyers must break past the overhead trendline to regain better control over the asset. 

Also Read: Galaxy Digital CEO Says Bitcoin “Will Resume Its Trend Higher” After Epic Bloodbath

On-Chain Data Reveals $12.41M WIF Sell-Off as Market Stutters

In response to a market dip, Lookonchain reports that four whales hastily sold off a total of 5.68 million WIF tokens, amounting to $12.41 million. The sales ranged from $1.9 to $2.35 per WIF, indicating a possible panic-sell scenario amidst market volatility.

After the market dropped, 4 whales sold 5.68M $WIF($12.41M) in panic!

9WHHoq sold 3.12M $WIF for 7.34M $USDC at $2.35.
BdvbXr sold 1.016M $WIF for 1.93M $USDC at $1.9.
85Abtu sold 905,074 $WIF for1.88M $USDC at $2.08.
DpJGh2 sold 641,598 $WIF for 1.26M $USDC at $1.97.

Address:… pic.twitter.com/p3ElbtiH50

— Lookonchain (@lookonchain) April 14, 2024

Such heavy transactions despite the recent dip indicate that smart money expects a further correction in Dogwifhat coin moving ahead. Thus, a potential retest of its resistance trendline may surge supply pressure in the market and plunge WIF below $2.

Technical Indicator 

• Exponential Moving Average: The coin price trading below the 4-hour EMA(20, 50, 100, and 200) indicates the near-term trend is bearish.
• Relative Strength Index: The RSI slope rebounded from the oversold region indicating the buyers may lead a temporary relief rally in the coming week.