Dogwifhat Price at Critical Point, Will It Plunge or Surge?
The Dogwifhat price slipped over 2% in the last 24 hours to trade at $1.80 at press time.
With the slight 24-hour loss, the WIF price is now down more than 24% on the weekly timeframe. Its monthly performance is also deeply in the red.
Dogwifhat Price Technical Overview
The Dogwifhat price has printed a series of lower lows and lower highs over the past few days. This has resulted in the formation of a medium-term negative price channel. Should the meme coin keep trading in this descending range, it might soon test the $1.6695 support level.
Also read: Bitcoin Price Slips Below Support Signaling Further Declines
Continued sell pressure should WIF fall to this technical crutch could expose it to the risk of falling to the subsequent mark at $1.3610 in the following few days.
On the other hand, the bearish thesis might be invalidated if the Dogwifhat price is able to maintain a position above the $1.6695 support level for the next 48 hours. In this alternative scenario, WIF could attempt to escape the bearish price channel.
Nevertheless, WIF might remain at risk until it is able to sustain a position above $2.1880, which is around the same level as the upper boundary of the negative channel. Consecutive 4-hour candle closes above this key price point could be seen as a long entry by traders.
With this potential buy pressure, the Dogwifhat price might have the backing needed to rise to $2.6290. In an extremely bullish situation, WIF could even overcome this technical barrier and continue climbing in the following couple of days.
Technicals Showing Bullish Signs
Technical indicators on WIF’s 4-hour chart suggest the meme coin’s price might rise in the upcoming 24 hours. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators are showing bullish signs.
More specifically, the MACD line is rising towards the MACD Signal line. An intersection between these two lines could indicate that the Dogwifhat price has entered a bullish phase.
Also read: Ethereum Price Eyes Breakout Above Key Resistance Levels
Meanwhile, the RSI is also closing in on its Simple Moving Average (SMA) line. Not only does this suggest diminishing seller strength, but might also be an early indication of bulls gaining the upper hand against bears. A confirmation could be if the RSI breaks above the SMA.
If these technical flags are validated, the Dogwifhat price could attempt a challenge at the $2.1880 resistance. Risk-averse traders might want to wait for the meme coin to clear this threshold before looking to go long on the crypto.
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