Dog-Themed Sensation Dogwifhat (WIF) Recovers from Drop Below $2 Support Zone, But Analyst Warns of Possible Retrace

This week, the dog-themed sensation Dogwifhat (WIF) has recovered from its drop below the $2 support zone.

Solana-based memecoin Dogwifhat (WIF) has had a stellar week, recovering from its drop below the $2 support zone and surging past Ethereum’s Layer-2 (L2) Arbitrum (ARB) in the rankings.

As of Friday, WIF is trading hands at $2.54, reflecting an 8% surge in the past 24 hours and a 60% rally over the past week. The memecoin has also seen a 25% gain over the past month.

This performance has earned Dogwifhat a spot among the top 40 cryptocurrencies by market capitalization, ranking 38th with a market cap of $2.5 billion.

Interestingly, WIF managed to overtake Arbitrum in terms of market cap on Thursday, an achievement it also attained on March 31 when it reached its all-time high (ATH) of $4.8 in the past quarter. At the time, the memecoin briefly held a market cap of $4.57 billion.

Several bullish forecasts were made for Dogwifhat during Q1 by crypto trader Bluntz, who also made a bearish prediction for the memecoin a month ago.

According to Bluntz, the Solana token was set for an “inevitable” fall to the $1 range. However, this prediction was based on a previous bullish analysis.

The trader noted that WIF was headed for a large retrace before the next parabolic run, which could lead to a new ATH.

After dropping from the $2.6 price range to as low as $1.51 on July 11, the dog-themed memecoin saw a price reduction of over 43%. Despite this downturn, WIF had a remarkable performance this week.

The token managed to reclaim the $2 support zone and is showing green numbers in several timeframes. Notably, Dogwifhat is up 43% and 21% in the past two- and three-month periods, respectively.

This performance has sparked optimism among some traders, with one crypto analyst known as Hornhairs stating that the memecoin “looks solid.” According to Hornhairs, if WIF can hold above the $2.2 price range, it could be set for a retest of the $3 resistance level.

On the other hand, another market watcher, CrediBull, has warned investors about a potential downside for Dogwifhat.

“People are taking most altcoins’ bounces as a sign of strength, but the reality is, alts and especially memes are just higher beta versions of BTC,” CrediBull stated.

The analyst added that the recent bounce is “nice,” but if Bitcoin (BTC) bounces or falls, Dogwifhat will follow the flagship cryptocurrency’s movement “harder/stronger.”

According to CrediBull, the memecoin “left a triple bottom right below us” after making a lower high on higher timeframes, which suggests to the trader that the token “is likely to follow with a 40% move back down of its own to take those triple lows.”

The above is the detailed content of Dog-Themed Sensation Dogwifhat (WIF) Recovers from Drop Below $2 Support Zone, But Analyst Warns of Possible Retrace. For more information, please follow other related articles on the PHP Chinese website!