After a recent surge of over 50%, the price of the memecoin Dogwifhat (WIF) on Solana appears to be at a turning point. With bullish forecasts from analysts, is now the right time for hesitant investors to take the plunge?
The popular memecoin from the Solana blockchain has recently shown undeniable signs of strength. Since its local low in early April, the price of WIF has gained over 50% in just one week.
However, the uncertainty prevailing in the entire crypto market has led to a 22% decline, with the memecoin currently at key support levels.
While price predictions for Dogwifhat from renowned analysts suggest the possibility of multiplied returns this year, cautious investors should remain vigilant about the right timing to buy.
As mentioned earlier, Dogwifhat has clearly shown signs of strength. For example, while the price of WIF formed new lows between March 9 and April 9, both the On-Balance Volume (OBV) indicator and the 1-day Relative Strength Index (RSI) created a flat base, signaling a possible bullish divergence and indicating a potential rebound.
Whales seem to be interested in WIF again. The on-chain analysis platform Stalkchain reported that a significant Fartcoin whale accumulated $377,000 worth of Dogwifhat on April 14. Consequently, WIF emerged as the most accumulated memecoin over a 24-hour period, signaling renewed interest from wealthy investors.
Unsurprisingly, price predictions for Dogwifhat from top analysts have turned bullish. The influential technical analyst Team Lambo Charts mentions the possibility of a rally up to $1.40, a key level for the memecoin. This would represent over 3 times the gains for new investors.
Another reputable trader, Man of Bitcoin, is even more optimistic in the long term, anticipating a new all-time high at $7.50, nearly 19 times the gains for buyers at the current price. Even if Dogwifhat only retests its previous high at $4.85, new investors will gain over 12 times their stakes.
Despite this recent 50% rally, it may still be too early to buy Dogwifhat. The memecoin has not managed to break above its weekly downward trendline on the daily chart. Instead, it formed a bearish divergence – a lower price low with a higher RSI high.
Respected analysts also remain cautious. Crypto Tony, for example, highlighted that the $0.42 level was crucial for him to buy and hold the memecoin.
However, the next essential support zones for WIF to bounce back are at $0.35 and $0.32. If these levels do not hold, then WIF could see a new monthly low at around $0.29.
In a scenario where Bitcoin rebounds in the coming days, staying above $0.42 could reignite hopes for a higher high this April.
For the medium term, the next resistances are around 48 and 75 cents, corresponding to the 50 and 100-day moving averages as well as strong demand zones.
In summary, it is still too early to jump into WIF memecoin; confirmation of a rebound above 48 cents or how it reacts in the $0.35 and $0.32 cent support areas is needed. Despite being oversold, has WIF truly found its bottom?
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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