Can Dogwifhat Coin Reverse Its Course? Analyst Predicts Move Toward $5

• Dogwifhat coin was struggling to recoup gains and still depicts bearishness.
• Analyst predict an upmove toward $5 if the memecoin splits its upper channel boundary.

Dogwifhat coin has struggled over the last three months and continued to lose its value. Amidst a prevailing bearish sentiment, the memecoin reached three month’s low, dragged more than

At press time, WIF crypto price was trading at $1.40, noting a decline over 8.86% in the past 24 hours. Its market cap has dropped to $1.4 Billion and the total supply stands at 998.84 Million.

Despite these challenges, crypto analyst suggest that WIF crypto could see a significant resurgence in its value in the coming days.

Analyst Eye Dogwifhat Coin Reversal Toward $5

Following a severe decline of over 70% from $4.50 to $1.50, WIF crypto seemed to complete its correction phase and may see a bounceback.

A recent post by Ali Martinez on X highlighted that Dogwifhat crypto has retested the demand zone and may spur gains in the coming days.

According to the analyst, WIF crypto has been stalled inside a downward parallel channel for the past few sessions.

In case of splitting the upper boundary of the channel, WIF crypto could reverse its course and may see a rebound toward $5 mark in the coming days.

However, the positional trend was still bearish and investors should keep a close eye on $2 breakout for a confirmed reversal.

What’s Next for WIF Crypto: Price Action Outlook

For the past three months, Dogwifhat coin has been in a bearish trend. It continued to form lower highs and lower lows sequences. Furthermore, a bearish crossover of the 50 day EMA and 100 day EMAs was displayed, which highlights a significant downtrend in the short term.

The Relative Strength Index (RSI) at 34 reflects downward momentum on the chart. Also, a negative crossover was exhibited which implies bearish pressure.

It has slipped below the 50% Fibonacci retracement level and stalled near the 38.2% support zone. If it breaches below the $1.30 mark, then it may retest its Aug 2024 low of $1.06 in the coming days.

Despite the analyst’s positive stance of rebound toward $5 mark, WIF price has not begun to recover from these losses and still subdued below the 20 day EMA mark.

The Chaikin Money Flow (CMF) indicator reading was below zero line at -0.18, revealing a capital flow out of the market.

What Does Futures Market Data Suggest?

Similar to the bearish indicators standpoint, the futures market data guided the downward trend. Data from Coinglass shows that $1.2 Million worth of long liquidations compared to $112k of short liquidations.

This imbalance in liquidation data hints that traders are forcing their positions to close due to insufficient funds to sustain it, hence triggering the price decline.

Another sign of seller dominance is the surge in Open Interest (OI) alongside the price decline. In the past 24 hours, the OI surged over 1.20% to $388 Million, which implies short buildup activity.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.