The popular meme coin Dogwifhat (WIF) has been in the spotlight recently for its market performance. It lost about 5% in value last week, but has maintained a 22% gain in the past month. Dogwifhat currently has a market share of 0.10% and a market cap of $2.47 billion, and is valued at $2.50.
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Bullish indicators start to appear
Crypto analyst Crypto Scient’s recent comments on the potential price trajectory of WIF are somewhat bullish. Dogwifhat has shown a noticeable positive signal in the market structure, the analyst argues. By establishing it as a new support zone, the coin has effectively reclaimed and reversed the major one-day support and resistance level of $2.25.
$WIPIt’s starting to look good again as the daily structure turns bullish again.
• Support by recovering and reversing 1D S/R at $2.25
• 1D 50 and 100EMA turned bullish.Next is the key 1D resistance at $3.3. Price will try to test this level in the coming hours… https://t.co/7RtYCcPCtu pic.twitter.com/OA3PbVAcsN
— Scientist (@Crypto_Scient) July 27, 2024
Also, the 50-day and 100-day exponential moving averages (EMA) are rising. EMAs are important signals for traders because they help them identify changes in trends and control price movements. This change in EMAs makes people more optimistic about WIF.
The resistance level of $3.30 represents the next notable move for WIF. Analysts predict that WIF will attempt to reach this level in the coming days to weeks. A break above this barrier would open the way for a significant move higher and a new all-time high (ATH). Investors should keep this in mind as the upside around $3.30 is likely to be important for risk management.
WIF Price Prediction
According to the current price estimate from CoinCodex, Dogwifhat could surge by up to 220% to $8.36 by August 28, 2024. Despite this very optimistic long-term outlook, the current market sentiment surrounding the coin is negative.
The Fear & Greed Index, which measures market sentiment, is at 74 (greedy), suggesting the market is looking too optimistic and could be headed for a correction.
Dogwifhat experienced green days with price volatility of 17% for 17 out of 30 days. These numbers show the inherent risk in the cryptocurrency market, even though they suggest a large potential for price appreciation.
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Investor sentiment: Proceed with caution
The recent short-term decline and pessimistic sentiment recommend a cautious approach to WIF, even though positive technical indicators and optimistic price predictions paint a good picture.
Pay attention to the significant resistance level around $3.30. If this level is not broken, the price of WIF may return to the $2.25 support, thus defining a trading range between $2.25 and $3.30.
Featured image from Bestchange, chart from TradingView