Dogwifhat (WIF) Sheds Some of Its Recent Gains, Drops Below Support

Trading at $1.78 at the time of writing, the dog-themed token ranks as the seventh cryptocurrency asset with the most losses in the past 24 hours.

Dogwifhat (WIF) has begun to shed some of its recent gains after leading the meme market rally a few days ago.

At the time of writing, the dog-themed token ranks as the seventh cryptocurrency asset with the most losses in the past 24 hours, trading at $1.78.

After rallying for a few days, Dogwifhat has now seen a 13% price dip in the past 24 hours. This decline comes after a period of rallying, which led to the formation of an ascending channel on a daily chart.

This pattern is formed when the price of an asset makes consistently higher highs and higher lows, creating two parallel trend lines that slope upwards.

The upper line of this channel acts as resistance, while the lower line serves as support. In WIF’s case, it faced resistance at $2.62 and support at $2.37.

However, as the buying pressure behind WIF weakened, its price closed below the lower trend line on July 3, indicating that the bulls failed to defend this support level.

When an asset's price drops below support, it signifies that selling pressure has surpassed buying pressure at that level. This is usually seen as an indication that the price decline will continue.

Traders may also interpret this break below support as a sign of weakness, prompting them to sell more, which could lead to a further decline in WIF’s price.

Despite the decrease in WIF’s price over the past 24 hours, its trading volume has spiked. It totaled $621 million at press time, rising by 101% during the period under review.

A bearish divergence occurs when an asset's price dips while its trading volume surges. This suggests that many market participants are selling their holdings due to the price drop, further sustaining the downtrend.

نازک ترین حاشیه سود در بازار ارزهای دیجیتال: پیش بینی قیمت WIF پس از کاهش 13 درصدی چیست؟

Parabolic Stop and Reverse (SAR) readings indicate a shift in market sentiment from bearish to bullish as WIF’s dots are seen above its price after an eight-day period below it.

This indicator aims to identify an asset's trend direction and potential reversal points. When its dots are placed above an asset's price, the market is said to be declining, indicating that the asset's price has been falling and may continue to do so.

If this scenario plays out, WIF’s price may continue to decline, potentially dropping to $1.71.

However, if buying momentum returns to the market, we could see the meme coin’s value rising to $1.86.

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