Dogwifhat (WIF) eased its rally on Saturday, going down by 1.6 percent to trade at $2.50 at the time of writing. Nonetheless, the meme coin has seen the highest growth rate of any crypto asset in the top 100 in the last week, with its gains standing at 56 percent. Furthermore, these exploits have seen it return to the top 50 most valuable crypto coins market capitalization ranking by CoinMarketCap.
The current WIF price is above the 50-day moving average, which stands at $2.251 as of this writing. This signals a bullish momentum that could propel further gains in the near-term.
In addition, the Moving Average Convergence Divergence (MACD) indicator has recently shown a growing number of green bars, supporting the bullish view. Furthermore, the MACD line is well above the signal line. Read together with the daily RSI, which is at 61 as of this writing, these indicators send a strong buy signal. That said, crypto assets and meme coins in particular are extremely volatile, and their trajectory can change drastically within hours.
A look at the Bollinger Bands on the 30-minute chart places a caution on the bullish narrative. The WIF price has recently crossed below the signal line on this chart, pointing to a potential weakening of the buying momentum. In addition, a red bar has crossed below the lower band, strengthening the view for a potential decline in the buying momentum in the near term.
A stay above $2.5 mark is particularly important for WIF, as it has been a key support area for the meme coin. In addition, a look at the chart below shows that a breach below that mark often sets the stage for a prolonged market downturn. Therefore, the current upside will likely continue as long as DogWifHat stays above the $2.5 psychological mark.
On the 30-minute chart, WIF will need to stay above the pivot mark at 2.46 to build an upside momentum. A break below that mark will put the sellers in control, with the first support likely to come at 2.41. Extended control by the sellers will break the first support and could strengthen the downside momentum to test 2.37. On the other hand, the buyers will have the upper hand if the price breaks above 2.47, with the first resistance likely to be at 2.51. Extended control by the buyers could strengthen the upside momentum to break the resistance, invalidating the downside narrative and potentially pushing WIF to test 2.55.
This post was last modified on Jul 20, 2024, 10:30 BST 10:30