- Dogwifhat (WIF), the once high-flying memecoin, has followed Bitcoin’s recent market decline.
- Crypto analysts suggest a potential price drop to $1 could be next for this dog-themed token.
- “The plan hasn’t changed,” according to well-known trader Bluntz, who forecasts a significant retracement.
Dogwifhat (WIF) memecoin faces steep decline; analysts predict $1 price target.
Is The Hat Still On?
Dogwifhat generated considerable buzz earlier this year, primarily during the Q1 memecoin rally. From a starting point of $0.004773, it surged by 95,000% to hit its all-time high of $4.58 by the end of March.
However, since reaching these peaks, WIF has traded in a range between $2.3 and $3.7, with another attempt to breach $4 resistance occurring in late May. Currently, technical analysts like Bluntz are setting a more modest $1 target for the memecoin.
Bluntz’s Analysis
Bluntz, a well-regarded crypto analyst, believes that a drop to the $1 mark is “inevitable.” According to his chart, WIF exhibits a macro five-wave impulse pattern followed by an a, b, c corrective zig-zag pattern.
Bluntz noted that the b wave took longer than expected but still sees a significant buying opportunity within the $1 to $2 price range. He considers this correction as a precursor to a bullish future, likely leading to a new all-time high.
Elon WIF Hat
At the start of the week, Dogwifhat gained some notoriety when Elon Musk, owner of X and often referred to as the ‘Dogefather’, acknowledged the memecoin during a live stream. “Yes, I have heard of dogWiFihat, dogwifhat,” Musk remarked before changing the topic.
The Musk Effect
The crypto community quickly picked up on Musk’s mention, sparking speculation about the potential impact on WIF’s price. Some users suggested that Musk had more to say but chose to refrain.
Despite the buzz, known as the ‘Musk Effect,’ WIF’s price remained stagnant, trading in the $2.65-$2.8 range. However, this acknowledgment did give rise to a similar-sounding memecoin, WIFIHAT, which saw a 6,200% surge shortly after Musk’s mention.
Market Performance and Activity
Over the past 24 hours, WIF has seen a 14.6% decline, trading at $2.44 at the time of writing. This signifies a 26.3% drop over the week and an 18% decrease over the past month. Conversely, market activity for WIF has surged by 76.1% in the same 24-hour period, with a daily trading volume reaching $705.6 million.
Conclusion
Dogwifhat’s recent performance reflects the inherent volatility of memecoins. While analysts like Bluntz suggest a substantial retracement to the $1 mark, the long-term outlook remains varied. Investors should keep a close eye on these developments, considering both the risks and potential rewards.
