- dogwifhat has retested key support levels as resistances in recent weeks, highlighting a strong downtrend.
- This trend has not yet halted, and lower timeframe buying pressure might not be enough to reverse the trend.
As an experienced market analyst, I’ve closely monitored the recent developments of dogwifhat (WIF) and have formed a bearish opinion based on the current market structure and technical indicators.
In recent weeks, Dogecoin (WIF) and other popular meme cryptocurrencies have experienced substantial declines. Following its peak at $4.08 on May 29th, WIF has lost approximately 54% of its value and was priced at around $1.86 as of the latest update.
As an analyst, I’ve observed that Dogecoin’s ranking on CoinMarketCap has dropped significantly, now sitting at 50th position, which is a noticeable decline from just a month ago. The $10 price prediction I had made did not materialize due to the recent change in market sentiment. Based on current trends, it seems Dogecoin might experience further losses. However, unexpected events or positive news could potentially trigger a recovery. Therefore, traders should remain vigilant and prepared for both possibilities.
The southward Fibonacci extension is the next price target
The bearish market trend for WIF was evident on the 15th of June, with prices rebounding from their lower price ranges, much like they did in April. However, unlike previous attempts, the bulls failed to ignite a sustainable rally.
The bounce in price failed to gain steam around $2.57, instead sliding downward. The revisiting of the 78.6% Fibonacci retracement level acted as a barrier, indicating that the $100.00 level and possible further declines could function as support areas.
At press time, the $1.95 level had been retested as resistance and the bears remained in control.
Over the past month, the Accumulation/Distribution chart showed a clear downward trend, indicating that selling pressure was stronger than buying pressure. Additionally, the Daily Relative Strength Index (RSI) remained below the neutral threshold of 50, signaling that the downtrend was persistent.
Hence, a move to the $1.26 support level is likely to commence soon.
The short-term sentiment was bearish and buyers lacked strength
In simpler terms, the longer and shorter term charts indicated bearish trends. According to Coinalyze’s 1-hour chart, Open Interest made attempts but failed to increase over the previous 24 hours. Concurrently, WIF experienced a bounce from $1.47 to $1.95.
Is your portfolio green? Check the WIF Profit Calculator
When the Options on the Index (OI) didn’t succeed, futures traders showed skepticism towards recovery and hesitated to place bids. However, the Cash Value of Deliverable (CVD) experienced a rebound, which was a positive sign.
In the previous day, there was a series of quick sales of contracts among short sellers due to the sudden price surge. While these traders may see gains in the near future, it’s essential for them to closely monitor the trend of the spot Contracts for Difference (CVDs).
Read More
- SQR PREDICTION. SQR cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- DOP PREDICTION. DOP cryptocurrency
- SAGA PREDICTION. SAGA cryptocurrency
- BLOCX PREDICTION. BLOCX cryptocurrency
- Miners ‘punishing’ Bitcoin? Analysts point fingers as BTC slides below $66K
- Top gainers and losers
- CELL PREDICTION. CELL cryptocurrency
- EUR BRL PREDICTION
2024-06-26 00:07