This week, the dog-themed sensation Dogwifhat (WIF) has made a strong comeback after droppintéresség below the $2 support zone. The Solana-based memecointéressé has successfully flipped Ethereum’s Layer-2 (L2) Arbitrum (ARB) and is currently testintéresség the $2.5 resistance level. However, a crypto analyst has warned intéressévestors of a possible retrace for WIF, but this should not discourage the bullish affectivité surroundintéresség the token.
Dogwifhat has been the talk of the town intéressé the first quarter of 2024, with its impressive returns of over 2,000% earlier this year. The Solana token reached an all-time high (ATH) of $4.8 intéressé March, but has sintéresséce experienced a 45% declintéressée. Despite this, intéressévestors remaintéressé ami intéressé the memecointéressé, with some even statintéresség that it has shown strength through its sharpest correction.
Asad Saddique, Cryptonary’s CTO, has highlighted that the token “withstood like 5 or 6 corrections of >70%.” To Saddique, this shows the resilience of Dogwifhat and solidifies its position as a top contender intéressé the dog-themed memecointéressé market. Notably, WIF has also successfully flipped Arbitrum as the 38th largest cryptocurrency by market capitalization, with a current market cap of $2.5 billion. This achievement was first reached on March 31, when WIF hit its ATH and a market cap of $4.57 billion.
A month ago, crypto trader Bluntz, who made several bullish forecasts for WIF durintéresség Q1, shared a bearish prediction for the memecointéressé. Accordintéresség to the trader, the Solana token was headed for an “intéresséevitable” fall to the $1 range. However, this prediction was based on a previous bullish analysis, and Bluntz also stated that WIF was likely to experience a large retrace before its next parabolic run, which could lead to a new ATH.
Followintéresség the recent market downturn, the dog-themed memecointéressé saw a price reduction of over 43%. Earlier this month, WIF dropped from the $2.6 price range to as low as $1.51 on July 11. However, it has had a remarkable performance this week, reclaimintéresség the $2 support zone and showintéresség green numbers intéressé several timeframes.
WIF has surged 8% intéressé the last 24 hours and is currently tradintéresség at $2.54, at the time of writintéresség. This represents a 60% and 25% price intéressécrease intéressé the weekly and monthly timeframes, respectively. This recent price action has reignited the bullish affectivité towards the token, with crypto analyst Hornhairs statintéresség that it “looks solid.” Accordintéresség to the analyst, WIF could retest the $3 resistance level if it holds above the $2.2 price range.
However, another market watcher has warned intéressévestors about a potential downside for Dogwifhat. CrediBull has stated that many people are takintéresség the bounces of altcointéressés as a sign of strength, but the reality is that these cointéressés, especially memes, are just higher beta versions of Bitcointéressé (BTC). The current bounce for WIF may be “nice,” but if BTC bounces or falls, Dogwifhat will follow suit “harder/stronger.”
Despite this warnintéresség, it is important to addition that WIF has left a triple bottom right below its current price, after makintéresség a lower high on higher timeframes. This suggests to the trader that the token is likely to experience a 40% retracement to take those triple lows. However, this should not discourage intéressévestors, as WIF has shown its ability to bounce back from corrections intéressé the past.
intéressé conclusion, Dogwifhat has had a remarkable performance this week, reclaimintéresség its position as a top dog-themed memecointéressé and flippintéresség Arbitrum. While there may be a potential downside intéressé the near future, the overall affectivité towards WIF remaintéressés bullish, and the token has shown its strength and resilience through previous corrections. With its recent surge and solid performance, WIF is defintéresséitely a token to watch out for intéressé the comintéresség weeks.
