Dogwifhat (WIF), the fourth-largest memecoin by market cap, has been on an impressive run over the past month. However, recent market volatility has seen WIF experience a pullback, raising concerns about whether the memecoin can recover and reclaim its previous highs. Despite the dip, technical indicators and market sentiment suggest that WIF may still be poised for a rebound. Let’s dive deeper into WIF’s price action, market outlook, and what to expect next.
WIF’s Recent Performance
Dogwifhat (WIF) has been riding a wave of positive momentum, with the token surging by 35.69% over the past month. WIF climbed from a low of $1.38 to a high of $2.63, capturing the attention of traders and investors alike. However, the last week has introduced some turbulence, with the memecoin experiencing a decline of 11.86% within the past 24 hours, leaving WIF trading at $2.15 at the time of writing.
The 11% dip raises the question: Can WIF recover its recent high of $2.63 or is the memecoin set for further declines?
Market Sentiment and Technical Analysis
Despite the recent dip, analysts are not yet ready to call an end to WIF’s bullish run. Decode Trading, a popular crypto analyst, suggests that WIF may still be on an upward trajectory, referencing the Elliott Wave Theory as the basis for this outlook. According to Decode, WIF has completed the corrective Wave 2 and is now advancing through Wave 3, which is typically the strongest wave in the pattern.
Elliott Wave Analysis
Wave 3 is seen as a significant rally phase, and within its internal structure, Wave 4 has already completed, with Wave 5 expected to push prices higher. This means the market correction may have reached its end, and WIF could be entering the next phase of its bullish cycle. Moreover, the memecoin has retested a critical support level and held it, adding strength to the bullish case.
Decode’s analysis signals a potential price recovery, indicating that the current dip might just be a consolidation before the next leg up.
Fundamental Factors Supporting WIF
While technical analysis suggests a continuation of the uptrend, it’s important to examine WIF’s fundamentals to get a clearer picture of what lies ahead.
Supply and Demand Dynamics
According to recent data, WIF’s Spot Netflow—which measures the net movement of tokens into or out of exchanges—turned negative three days ago. A negative netflow indicates a reduction in the supply of WIF on exchanges, implying that fewer tokens are available for sale. This behavior often reflects bullish sentiment, as investors appear to be holding onto their WIF tokens in anticipation of higher prices.
Funding Rates
WIF’s funding rate, a key indicator of market sentiment, has remained positive for the last seven days. This suggests that capital is still flowing into the memecoin, and traders are betting on a price increase. A positive OI-weighted funding rate further supports the bullish outlook, as long-position traders are willing to pay to hold their positions, showing confidence in a future price rise.
These indicators suggest that the underlying demand for WIF remains strong, even after the recent price dip.
What to Expect in the Short Term
Given the current market conditions and technical indicators, WIF is approaching a key resistance level at $2.33. If the memecoin can break above this price, it is likely to attempt a full recovery to its previous high of $2.63.
However, if the bearish trend continues, the next significant support level for WIF is around $1.90. A drop below this level could signal further downside risk, though the positive sentiment and fundamentals suggest that this scenario is less likely in the short term.
Key Levels to Watch:
- Resistance: $2.33 (short-term), $2.63 (recent high)
- Support: $1.90 (key level to avoid further decline)
Conclusion
Despite the recent pullback, Dogwifhat (WIF) remains in a strong position to recover and potentially reclaim its previous highs. Technical analysis, especially the Elliott Wave Theory, points to a bullish continuation, with Wave 3 expected to push prices higher. Meanwhile, fundamental factors such as reduced supply on exchanges, positive funding rates, and increased demand for long positions strengthen the case for a price rebound.
AsWIF Dips 11%—But Wave 3 Could Send Dogwifhat to New Highs!allenge the $2.33 resistance and make another run toward $2.63. However, investors should also be mindful of potential risks, especially if WIF fails to maintain its upward momentum.
For now, Dogwifhat seems to be in a good position, and if the bulls can regain control, WIF may soon reclaim its recent all-time high and continue its monthly uptrend.
