As a crypto investor with some experience under my belt, I’ve seen my fair share of market corrections and trend reversals. The recent price analysis of Dogwifhat (WIF) has piqued my interest, given its notable resilience above the $1.47 support during this bearish week for major cryptocurrencies.
Week One of July: A Bearish Period for Cryptocurrencies’ Prices: The first week of July saw a downturn in the prices of most major cryptocurrencies. Bitcoin, for instance, corrected to $53,500 due to forced sales from Mt. Gox Exchange and government interventions in both the US and Germany, intensifying the market correction. In contrast, WIF‘s price remained resilient above $1.47, forming a bullish reversal pattern despite the prevailing supply pressure.
Dogwifhat Price Analysis: Why $3 Barrier Critical for Trend Reversal
In spite of the current market downturn, Dogwifhat, the memecoin built on the Solana platform, displayed remarkable strength above the $1.47 support level. The price of Dogwifhat bounced back twice from this horizontal support within a three-week period, suggesting that buyers were actively defending this price floor.
As a researcher investigating recent cryptocurrency market trends, I came across an intriguing finding reported by Lookonchain, an on-chain data tracker. Despite a significant sell-off instigated by a crypto whale, a certain token priced at around $1.47 maintained its strength. Notably, during the middle of the week, this influential market participant transferred 900,000 WIF (worth 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).
— Lookonchain (@lookonchain) July 4, 2024
After completing this transaction, I now hold 974,000 WIF, equivalent to approximately $1.76 million in my crypto wallet. These sizeable transfers indicate that this prominent investor is likely considering reducing its position in Dogwifhat coin. This could be due to a belief that the price may not experience significant fluctuations in the imminent period.
The recent downturn from the $1.47 support level has caused a significant surge in WIF‘s price, increasing by 31.8% within just two days to reach $1.95. Additionally, the market capitalization has grown impressively to $1.94 billion. A glance at the 4-hour chart reveals that this recovery is shaping up as a double bottom – a commonly observed reversal pattern that typically emerges near the market’s bottom.
Based on the current trend, the WIF price may increase by approximately 21% more, reaching around $2.36. Should the price surpass this resistance level, it would offer buyers a strong incentive to push for the $3 mark.
An examination of the day-to-day price chart indicates that the $3 mark aligns closely with the resistance line of the channel, which has influenced the market behavior of WIF since late March. Consequently, for a definitive trend reversal, traders need to surmount this horizontal 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.
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2024-07-06 18:22