WIF price likely to crash 16% as bears gain momentum

Source Fxstreet
  • Dogwifhat price broke the key daily support level at around $3.182.
  • WIF price could have a relief rally to fill the imbalance, stretching from $3.152 to $2.888.
  • A daily candle stick close above $3.182 would invalidate the bearish thesis.

Dogwifhat (WIF) price gave a bearish outlook after breaking below its key support level at $3.182 on Friday. The Solana-based meme coin could have a dead cat bounce situation before continuing its bear market rally.

Dogwifhat price likely to have a dead cat bounce

Dogwifhat price plummeted by 20% after breaking below the daily support level of $3.182 on Friday. This Solana-based meme coin may experience a dead cat bounce, a brief and sharp price increase during an overall downtrend. This relief rally could address the price imbalance between $3.152 and $2.888. If the market outlook does not improve, WIF could face rejection at the midpoint of this imbalance, around $3.014. Such a development could trigger a 16% crash and retest the daily support level at $2.525.

Supporting this theory of a potential upward draft followed by rejection is the Relative Strength Index (RSI), which is currently around 33.89, just above the oversold threshold of 30. This suggests that bearish pressure might ease temporarily, allowing for a relief rally before the WIF price resumes its downward trend.

WIF 4-hour chart

WIF 4-hour chart

However, if a WIF daily candlestick closes above the $3.182 level, it will create a higher low on the daily chart, signaling a bullish market structure. This development would invalidate the bearish outlook and could trigger a potential 6% rally, reaching a daily high of $3.357 from June 7.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Rout. Bridgewater Founder Dalio Publicly Backs Gold.Gold returns to the $5,000 mark as Bitcoin prices weaken to hit new lows; what is the future outlook?During the Asian session on Wednesday (February 4), gold ( XAUUSD) prices continued to
Author  TradingKey
12 hours ago
Gold returns to the $5,000 mark as Bitcoin prices weaken to hit new lows; what is the future outlook?During the Asian session on Wednesday (February 4), gold ( XAUUSD) prices continued to
placeholder
Gold rallies further beyond $5,050 amid flight to safety, dovish Fed expectationsGold (XAU/USD) attracts follow-through buying for the second consecutive day and surges past the $5,000 psychological mark during the Asian session on Wednesday amid the global flight to safety.
Author  FXStreet
14 hours ago
Gold (XAU/USD) attracts follow-through buying for the second consecutive day and surges past the $5,000 psychological mark during the Asian session on Wednesday amid the global flight to safety.
placeholder
Bitcoin Bottom Debate: $70,000 or $50,000? Where is the Bitcoin bottom? Can you buy the dip now? Cathie Wood suggests swapping gold for Bitcoin.On Tuesday (February 3), panic in the crypto market eased as Bitcoin ( BTC) prices reb
Author  TradingKey
Yesterday 10: 30
Where is the Bitcoin bottom? Can you buy the dip now? Cathie Wood suggests swapping gold for Bitcoin.On Tuesday (February 3), panic in the crypto market eased as Bitcoin ( BTC) prices reb
placeholder
Bitcoin Reaches ‘Fire-Sale’ Valuations as ETF Outflows Jump, Says BitwiseBitcoin’s two-year rolling MVRV z-score has dropped to its lowest level ever, pointing to extreme undervaluation.
Author  Mitrade
Yesterday 10: 25
Bitcoin’s two-year rolling MVRV z-score has dropped to its lowest level ever, pointing to extreme undervaluation.
placeholder
Analyst Flags XRP as Market’s ‘Best Risk/Reward’ Play as Token Tests Critical $1.60 SupportCrypto analyst Scott Melker identifies a prime risk/reward setup for XRP as it tests key support at $1.60, offering a tight stop-loss against potential upside targets near $2.00.
Author  Mitrade
Yesterday 06: 24
Crypto analyst Scott Melker identifies a prime risk/reward setup for XRP as it tests key support at $1.60, offering a tight stop-loss against potential upside targets near $2.00.
goTop
quote