- WIF surged 30% but corrected sharply, leaving investors questioning if $2 is the right entry.
- $3.80 resistance holds firm as whales cash out and long positions get liquidated.
- RSI cooling off and shorts over-leveraged could signal a buying opportunity for new investors.
A month ago, dogwifhat (WIF) saw a massive 30% surge, hitting $4.83 in a single day. This was the longest green candlestick in the coin’s history. Just when WIF seemed ready to break its all-time high, a sharp correction dropped the price to $2.90. The volatility of memecoins is clear, but does that make $2 the perfect entry, or is there still hope for a rebound? Let’s dive in.
Analyzing Why WIF Missed a New High
Timing is key in crypto, and WIF’s recent ride shows just how quickly things can change. After the 30% rise, the Relative Strength Index (RSI) hit overbought levels, suggesting a pullback was coming. Around the same time, Bitcoin surged past $90K during the “Trump pump.” This triggered panic, causing Bitcoin to dip 3%. However, WIF experienced a dramatic drop, losing four times more than Bitcoin.
Since then, WIF has tried to bounce back, but the $3.80 resistance level remains a strong barrier. Two main factors are holding WIF back: first, the volatility of memecoins attracts quick investors who pull out at the first sign of weakness. Second, large players are cashing out, taking profits before market conditions shift again.
Should You Buy or HODL?
Every time WIF approaches $3.80, a massive cluster of long positions gets liquidated. This is visible in the Open Interest, which has dropped sharply from $1 billion to $541 million. As a result, WIF saw a daily decline of over 17%, with the price falling below $3.
Despite the $3.80 resistance, there’s still hope for WIF. Recent whale activity shows that the market hasn’t fully bottomed out. A large sell-off of 1.2 million WIF tokens signals that some weak hands have yet to exit. On the bright side, the RSI has cooled, and spot traders are starting to buy the dip.
Shorts are becoming dangerously over-leveraged, which could set the stage for new buyers to enter. If you’re already holding WIF, HODLing might be the smartest move. With the right market conditions, WIF could rebound and push toward $3.80. Keep an eye on this one—WIF’s journey could just be getting started.
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