Dogwifhat’s price has seen persistent bearish pressure despite signals suggesting a potential reversal. Popular analyst Crypto Jobs shared an update on X (formerly Twitter), highlighting a clean bullish divergence on the Relative Strength Index (RSI). However, the price continues to struggle against resistance levels. The analyst referenced historical price movements, indicating that similar setups previously led to an 80% recovery from the lows.
The WIF 4H chart shows a consistent downtrend, characterized by lower highs and lower lows since early February. A descending resistance line has limited upward movements, while WIF’s price is holding above a strong support zone. This support, marked in green, has led to multiple bounces in the past, suggesting a key level for potential accumulation.
Despite the ongoing selling pressure, the lower trendline appears slightly tilted upward, which could indicate a falling wedge rather than a strict descending triangle. If confirmed, this formation typically results in a bullish breakout. However, a failure to hold support could push WIF’s price lower, with a potential drop toward the $0.50 range.
What you'll learn 👉
Dogwifhat Potential for a Reversal
Crypto Jobs noted that previous price movements under similar conditions resulted in an 80% recovery from the lows. The price chart shows RSI divergence, which might signal a momentum change, but we don’t have a clear breakout yet. If WIF breaks above the descending trendline, we could see it move up to the $0.73-$0.75 range. This is a major resistance zone that could determine if the upward movement continues.
If support fails to hold, WIF’s price might drop and test lower levels before recovering. Traders are looking for confirmation signs like higher buying volume or a solid break above resistance.
Read Also: Ripple vs SEC Update: Pro-XRP Lawyer Reveals Timeline for Settlement — Hint: Earlier Than Expected
Risk Management and Market Sentiment
The analyst emphasized a cautious approach, setting a stop loss below the green support zone to manage potential downside risk. This approach shows caution about calling the bottom while recognizing we might see a trend change soon.
The market is keeping a close eye on key levels to see if WIF’s price can break out of its downtrend. The next few trading sessions will be critical in determining which way it goes, as the price sits at an important decision point.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
