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Dogwifhat Price Drops 10%, Ascending Support Causes WIF Bounce

Last Updated May 13, 2024 11:42 AM
Nikola Lazic
Last Updated May 13, 2024 11:42 AM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Dogwifhat dropped over 10% in 24 hours.
  • WIF formed an ascending channel after a major rise.
  • The memecoin is testing testing key support level but the future is unclear.

The crypto market experienced a slump on May 13, with some coins being hit more than others. Dogwifhat was the biggest loser with a 24-hour change of over 10%. 

List of top 10 losers
Dogwifhat was the biggest loser on May 13 2024

Its price went from a high of $3 to a low of $2.74 but quickly bounced back. At the time of writing (May 13) it was below $3 again. This was due to an interaction with the ascending support anchored from its April 13 low. That, therefore, could serve as a pivot point between a bullish and a bearish outlook. 

Dogwifhat (WIF) In Ascending Channel 

On March 31, the price of WIF reached its all-time high of nearly $5, a culmination of a long-lasting uptrend from February, starting at a low of $0.20. This 3000% rise ended on a five-wave impulse, after which we saw a downturn. 

WIF
WIFUSDT MEXC | Creddit: Nikola Lazic/Tradingview

On April 13, WIF hit a low of $1.98 but quickly snapped back and closed its 4-hour candle above $2.20. Since then, we have seen the formation of an ascending channel with two consecutive higher highs at $3.50 and $3.70, ending on May 6. 

The price is testing its ascending support, which could be the second-highest low and confirmed support. If this happens, WIF  could make a bounce and continue its upward trajectory with stronger momentum, breaking above the ascending channel. 

Alternatively, it could continue its downward trajectory, going below its ascending support, which could confirm a larger downtrend. 

Dogwifhat (WIF) Price Prediction 

Considering that the ascending channel is above the mid-range of the previous major uptrend, both things are equally possible. The four-hour chart RSI is at 47%, the mid-range for its overbought or oversold conditions. 

4-hour chart
WIFUSDT MEXC | Credit: Nikola Lazic/Tradingview

In addition, the MACD indicator showed a starting downtrend from yesterday. May 12, but is now showing diminishing momentum and a positive curvature between its moving averages. 

There is a bullish count in which the rise from May 1 until 6 is its first sub-wave of the starting uptrend. In that case, the following downturn is its lower-degree corrective wave, leading WIF to a stronger momentum increase. As the price is currently testing both the ascending support and the horizontal prior low of $2.90, we will see if this projection holds. 

If the price gets support, WIF could reach its all-time high of nearly $5. But if it goes below it, another lower low compared to April 13 of $3 is likely, with the 0.786 Fibonacci level at $1.10 being its next likely target. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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