Dogwifhat (WIF) Sees 60% Weekly Surge But Analyst Warns Of Potential Retrace
July 20 2024 - 12:30AM
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This week, the dog-themed sensation Dogwifhat (WIF) has recovered
from its drop below the $2 support zone. The Solana-based memecoin
flipped Ethereum’s Layer-2 (L2) Arbitrum (ARB) and is currently
testing the $2.5 resistance level. However, a crypto analyst has
warned investors of a possible retrace for WIF. Related Reading:
Injective (INJ) Breaches Key Resistance, Setting Stage For 1,350%
Boom — Analyst WIF Puts Its Hat Back On Dogwifhat became the
memecoin sensation of 2024’s first quarter (Q1), giving returns of
over 2,000% earlier this year. The Solana token reached an all-time
high (ATH) of $4.8 in March but has declined 45% since then.
Despite this, investors remain bullish on the memecoin, some
stating it has shown strength through its sharpest correction. Asad
Saddique, Cryptonary’s CTO, highlighted that the token “withstood
like 5 or 6 corrections of >70%.” To Saddique, Dogwifhat
solidified during the retraces and “challenges” for the dog-themed
memecoin throne. Notably, WIF flipped Arbitrum as the 38th largest
cryptocurrency by market capitalization today 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 ago,
crypto trader Bluntz, who made several bullish forecasts for WIF
during Q1, shared a bearish prediction for the memecoin. Per the
trader, the Solana token was set to an “inevitable” fall to the $1
range. However, this prediction was based on a previous bullish
analysis. Bluntz stated that WIF was headed for a large retrace
before the next parabolic run, which could lead to a new ATH.
Following the market downturn, the dog-themed memecoin saw a price
reduction of over 43%. Earlier this month, WIF dropped from the
$2.6 price range to as low as $1.51 on July 11. Nonetheless, it had
a remarkable performance this week. The token reclaimed the $2
support zone and exhibits green numbers in several timeframes. Will
It Shred Another 40% Soon? WIF surged 8% in the last 24 hours and
trades at $2.54, at the time of this writing. This performance
represents a 60% and 25% price increase in the weekly and monthly
timeframes. The recent price action has seemingly revitalized the
bullish sentiment towards the token. Crypto analyst Hornhairs
claimed that the memecoin “looks solid.” To the analyst, WIF could
retest the $3 resistance level if it holds above the $2.2 price
range. However, another market watcher has warned investors about a
potential downside for Dogwifhat. CrediBull stated that people are
taking most altcoins’ bounces as “a sign of strength, but the
reality is, alts and especially memes are just higher beta versions
of BTC.” To the analyst, the current bounce is “nice,” but, if
Bitcoin (BTC) bounces or falls, Dogwifhat will follow the flagship
cryptocurrency’s movement “harder/stronger. Related Reading: FET
Surges 12% Ahead Of ASI Token Merger Phase 2, Can It Hit $5? The
memecoin “left a triple bottom right below us” after making a lower
high on higher timeframes. This suggests to the trader that the
token “is likely to follow with a 40% move back down of its own to
take those triple lows.” Featured Image from Unsplash.com, Chart
from TradingView.com
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