Dogwifhat Price Spikes Over 20% After Coinbase Perpetual Contracts Announcement — Can WIF Go Higher?
Dogwifhat made a significant spike today on the positive news, but will this momentum lead to a sustainable rally?
Key Takeaways
- WIF rebounds 24% after Coinbase announced it would add Dogwifhat perpetual contracts.
- Crypto market volatile, rapid rebound after geopolitical tension.
- Altcoin market shows signs of potential reversal.
On April 13, memecoin dogwifhat (WIF) dipped below $2, concluding its downtrend from its March 31 peak of $4.86 on a 59% decrease. Since then, it has started consolidating, recovering to $3 initially, but later fell to retest its $2 low on April 18.
Today, it rose by 24% to a daily high of $2.80 following Coinbase’s announcement of adding WIF perpetual contracts. Can this ignite a new larger uptrend or is it just a brief reaction to the news?
Altcoin Market Context
The cryptocurrency market recently faced high volatility, with most major digital assets briefly recovering before a sharp downturn triggered by geopolitical tensions from military actions between Israel and Iran. This downturn saw Bitcoin drop below $60,000 for the first time in nearly two months. However, the market rebounded quickly, with significant gains on April 19.
The altcoin market cap, crypto’s total market cap excluding Bitcoin and Ethereum,, is showing promising signs. Since its $791 billion peak on March 31, it fell to a horizontal support zone and has stayed above it.
The daily chart RSI is at its oversold threshold of 30%, indicating that the low could be in. MACD, although still bearish, is starting to show curvature both on the moving averages and the oscillator, hinting at a potential trend reversal.
Expanding its offerings to include WIF perpetual contracts, Coinbase brought legitimacy to the memecoin sector. The resurgence of WIF coincided with other meme coins like MEW, which surged by 17%, while PEPE, FLOKI, and BONK also posted notable gains.
WIF Price Analysis
From its March 31 peak of $4.86, WIF formed a descending channel, falling to a low of $2. This was a retest of the 0.618 Fibonacci retracement level, which served as support. As we previously saw the completion of the larger five-wave impulse, the descending channel could be its proceeding correction, especially as it came to its typical 0.618 Fibonacci point.
There are two scenarios ahead. Either the correction ended, or it has one more retest of its $2 support before it does. In the first case, the recovery we saw today is the start of its next uptrend. This should lead WIF to a breakout above the descending resistance.
If that happens, we could see a larger rise to the $4 area and receive a signal of the next advancement to a new all-time high later in 2024. However, should we see a rejection at the falling resistance, WIF could make another downturn and even have the potential to fall further than $2.
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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