Dogwifhat (WIF) has dropped by 13% in the past 24 hours, with its current price at $1.78. The token recently fell below its $2.37 support level, indicating rising selling pressure. If the bearish trend persists, WIF could further decline to $1.72.
A few days after leading the meme market rally, Dogwifhat (WIF) has started losing some of its recent gains. Currently trading at $1.78, the dog-themed token has become one of the top seven cryptocurrencies with the biggest losses in the past 24 hours.
Dogwifhat (WIF) Faces 13% Price Drop Amidst Bearish Trend
Dogwifhat (WIF) has experienced a 13% price drop in the past 24 hours, following a recent rally that created an ascending channel on its daily chart. This pattern is characterized by the price making higher highs and higher lows, forming two parallel upward-sloping trend lines. In WIF’s case, the upper trend line acted as resistance, while the lower line served as support.
Dogwifhat Analysis. Source: TradingView
The token encountered resistance at $2.62 and support at $2.37. However, on July 3, WIF’s price fell below this support level, indicating that buying pressure had weakened and the bulls were unable to maintain the support. This breakdown below support is a bearish signal, suggesting that the decline could continue as selling pressure overwhelms buying pressure.
The recent price drop has been accompanied by a significant increase in trading volume, which has surged by 101% to $621 million. A bearish divergence is evident here, where the rising trading volume amid falling prices indicates that more market participants are selling their holdings. This trend further supports the ongoing downtrend in WIF’s price.
WIF’s Parabolic SAR Indicator Signals Potential Trend Reversal
Recent readings from Dogwifhat’s (WIF) Parabolic Stop and Reverse (SAR) indicator reveal a shift in market sentiment. After being positioned below the price for eight days, the SAR dots are now resting above the token’s price. This change indicates a bearish trend, suggesting that the price may continue to decline.
The Parabolic SAR indicator helps identify the direction of an asset’s trend and potential reversal points. When the dots are above the price, it signals a downtrend. If this bearish trend persists, WIF’s price might drop further to around $1.71.
Dogwifhat Analysis. Source: TradingView
Conversely, if buying momentum returns, there is potential for the token’s price to rise to $1.86. This highlights the possibility of a trend reversal if market conditions improve.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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