- Dogwifhat has been experiencing significant downward pressure, retesting crucial support levels as resistances over recent weeks.
- The ongoing trend remains unbroken, with buying pressure on lower timeframes insufficient to counteract the broader bearish momentum.
- In recent weeks, major memecoins, including dogwifhat, have faced substantial losses, amplified by shifting market sentiments.
Dogwifhat continues to struggle amidst bearish trends, highlighting key resistance retests and suggesting potential further declines.
The next price target: Southward Fibonacci Extension
Dogwifhat (WIF) has displayed a significantly bearish market structure in recent months. Despite multiple bounces from range lows, the bulls failed to ignite a sustained rally in mid-June.
These bounces quickly lost steam near the $2.57 level, confirming the 78.6% Fibonacci retracement level as a strong resistance zone. This setup indicates that the 100% Fibonacci retracement level and further downward extensions are the next likely support targets.
As of now, the $1.95 level has been retested as resistance, and bearish control remains evident.
Additionally, the Accumulation/Distribution indicators have shown a consistent downtrend over the past month, with the daily RSI staying below neutral 50, indicating sustained bearish momentum.
Short-term sentiment and lack of buying power
Short-term metrics also paint a bleak picture for WIF. Coinalyze’s 1-hour chart reveals that Open Interest could not gain traction despite a price bounce from $1.47 to $1.95. This suggests that futures traders are skeptical of any immediate recovery and hesitant to place bullish bets.
While the spot CVD showed a temporary uptick, indicating some buying interest, it was not enough to change the overall negative sentiment. Short sellers experienced a wave of liquidations due to the price bounce, but they might find more favorable opportunities if the bearish trend resumes, as anticipated by the current market indicators.
Conclusion
Dogwifhat’s ongoing bearish trend suggests further downside potential as critical support levels turn into resistances. Both short and long-term indicators corroborate a continued bearish outlook, and traders should remain cautious. Future market movements will likely depend on broader market cues and sentiment shifts, which remain currently unfavorable.
