During the middle of the week, meme coins, specifically Dogwifhat (WIF), are facing increased supply pressures, resulting in significant price drops.
Despite efforts, WIF was unable to surpass the resistance level of $3.35, leading to a 10% decrease in its market value and a loss of support at $3.
Technical indicators suggest a bearish trend with the possibility of the downtrend continuing, although a reversal from the broken resistance trendline could indicate a potential recovery.
The mid-week cryptocurrency market downturn has had a severe impact on meme coins, particularly due to the increase in supply. This has affected their price stability and overall market performance. Dogwifhat, which is a relatively new and popular meme coin, has experienced a dramatic reversal in its price, posing a threat to the ongoing bullish trend.
In terms of current market conditions and price movements, Dogwifhat initially struggled to overcome a significant supply resistance at $3.35. However, it has since seen a 10% decline in its market value. This decline caused the WIF price to fall below the crucial $3 mark, moving towards the next support level. The 18% decrease in trading volume indicates a potential exhaustion of the bullish trend, which could lead to further supply entering the market.
As a result of the price decline, it has retested a previously broken resistance trendline within a triangle pattern. This development is being closely monitored by sideline traders, who anticipate a potential rebound to continue the upward trend.
Looking ahead, the prospects for a Dogwifhat comeback appear challenging. While there is a possibility of a reversal from the broken resistance trendline after the retest, the recent 4% intraday decline suggests that the downtrend may persist.
If a reversal does occur, WIF could aim for the $5 mark within this month. However, if the price falls below $2.75, it risks testing the psychological barrier at $2, further adding to the bearish outlook.
In these volatile market conditions, investors and traders will need to closely monitor market sentiment and technical indicators to assess the potential for recovery or continued declines in the Dogwifhat market.