How High Will Dogwifhat Go Before a Trend Reversal?

Dogwifhat has been on a massive run in the last few days. The uptrend started last Tuesday with a more than 2% hike. The price progressively increased over the next two days, with the token gaining a whopping 20% on Thursday.

WIF slowed down on Friday but resumed its massive run on Saturday. This was its biggest single day during the seven-day session. It opened the session at $0.74 and attempted the $1 mark but fell short at $0.97. Nonetheless, it closed with gains exceeding 26%. 

The most significant breakout happened on Monday when the token surged from $0.91 and broke the $1 mark for the first time since Feb. 1. The uptick continued as the memecoin peaked at $1.32. However, it faced massive rejections that saw its price dwindle. 

WIF retraced to a close at $1.14. Nonetheless, it ended the intraday session gaining over 26%. Price action on Monday sparked fears of a massive decline. This comes after the coin lost almost 40% of its accumulated gains. It is worth noting that the sentiment across the market is gradually shifting. The fear and greed index dropped, indicating the growing reservations.

Why did Dogwifhat Dip?

Strategy announced it had just purchased more Bitcoin for its bag. Prices across the crypto market stopped surging. The declines across several assets were visible, as the apex coin, which broke above the $105k resistance, faced massive selling pressure afterwards. 

It dropped to a low of $100,764 before rebounding. However, it registered notable losses. The same trend played out with Solana. It peaked at $181, its highest value since Mar. 2. It retraced to $168 and closed with a doji. 

Both assets reacted to the trend every time Strategy announced a massive buy. The crypto market saw a notable decline as other players took it as a prompt to offload their bags. This caused notable selling pressure, resulting in massive price declines. 

The halt to WIF’s uptrend signifies that it succumbed to the sentiment across the crypto market. Selling volume remained constant in the early hours of Tuesday, causing the asset to drop to a low of $1.05. It recovered and peaked at $1.20, but currently trades at its opening price.

Data from CoinMarketCap shows that the memecoin is seeing a massive decline in trading volume. The buying and selling of the asset dropped by almost 50% in the last 24 hours. This may indicate a gradual loss of interest in the cryptocurrency, affecting volatility in the coming days.

Nonetheless, trading conditions are gradually becoming positive. If the improvements continue, WIF may continue to enjoy a notable increase. 

WIF is Overbought

The one-day chart shows that indicators are bearish. The relative strength index climbed last week and has since trended above it. Currently at 82, Dogwifhat is overbought. Traditionally, an asset undergoing this situation is bound for a massive retracement.

The bollinger band prints a similar signal. WIF surged above the upper band on Saturday, and trends above the mark at the time of writing. Previous price movements suggest that the memecoin is due for corrections. One such event occurred in November 2024, resulting in a 30% decline before recovering. 

Both indicators imply that the altcoin may not surge past Monday’s high but may hover close to it before a significant downtrend. On the other hand, the moving average convergence divergence is positive, hinting at the possibility of more upward drive. 

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