- Summary:
- WIF price has failed to pick up momentum as investors shy away from meme coins. Does a recent testing of $3.00 signal a looming danger?
Dogwifhat (WIF), a meme-inspired coin, has recently broken below $3.00 after a blistering 1,880% YTD rally. Its retracement aligns with a muted performance for meme coins more broadly, as investors increasingly attune themselves to projects providing utility beyond speculation. But even with the sell-off now, signs are emerging that WIF could be set to push higher again.
WIF price momentarily broke below the $3 psychological support price on Monday. However, a bounce back from that level, alongside multiple rejections last week signals a potential upside. However, the odds are seemingly stuck against WIF, and it could struggle to match up.
Sour Meme Coin Sentiment Subdues WIF Price
DogWiFHat price has recently broken below the 20-Exponential Moving Average (EMA) level, which stands at $3.16 on the daily chart as of this writing. In addition, the Relative Strength Index (RSI) reading is at 50, signaling a near-equilibrium between the upside and downside momentum. That wouldn’t sit well with most investors in the current crypto market rally conditions.
Robinhood listed DogWifHat a week ago, expanding its market exposure significantly. However, that has turned out to be a non-event for crypto investors, as meme coins struggle to attract buyers in the current market rally.
Binance Founder, Changpeng Zhao, recently added his weight to the bias against meme coins, stating that they were “getting weird”.Instead, he called for a focus on using blockchain to build “real applications.”
This type of sentiment is ingrained in the current crypto market, with no notable meme coin performances akin to the Shiba Inu and Dogecoin rallies of 2021. If this sentiment persists, it could add more downward pressure to WIF price.
WIF Price forecast
Pivot: WIFUSD pivots at $3.20, and action will continue to the upside if the buyers build momentum to sustain it above that mark. The sellers will be in control if resistance persists at that level.
Support: Initial support is likely to be at $3.10. However, a stronger bearishness could break below that mark and test $3.00.
Resistance: The first resistance is likely to be at $3.30. Extended control by the buyers will break above that level, which would invalidate the downside narrative. Also, the momentum could push the price further up to find the second hurdle at $3.38.
