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. Nonetheless, a crypto analyst has warned investors of a possible retrace for WIF.
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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 12 months. 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 in the course of the retraces and “challenges” for the dog-themed memecoin throne.
Notably, WIF flipped Arbitrum because the thirty eighth 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.
Dogwifhat flips Arbitrum by market capitalization. Source: Degen News on X
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.
Nonetheless, this prediction was based on a previous bullish evaluation. Bluntz stated that WIF was headed for a big retrace before the subsequent parabolic run, which could lead on to a recent 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 little 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 One other 40% Soon?
WIF surged 8% within the last 24 hours and trades at $2.54, on the time of this writing. This performance represents a 60% and 25% price increase within the weekly and monthly timeframes.
The recent price motion 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.
Nonetheless, one other market watcher has warned investors a few potential downside for Dogwifhat. CrediBull stated that folks are taking most altcoins’ bounces as “an indication of strength, but the truth is, alts and particularly memes are only higher beta versions of BTC.”
To the analyst, the present bounce is “nice,” but, if Bitcoin (BTC) bounces or falls, Dogwifhat will follow the flagship cryptocurrency’s movement “harder/stronger.
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The memecoin “left a triple bottom right below us” after making a lower high on higher timeframes. This means to the trader that the token “is prone to follow with a 40% move back down of its own to take those triple lows.”
WIF’s performance within the weekly chart. Source: WIFUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com