Dogwifhat (WIF) Price Tumbles — 22% Drop Puts Solana Memecoin on the Ropes

Key Takeaways

• Instead of pushing toward the upper trendline of the symmetrical triangle, WIF is hovering near lower support.
• Data shows WIF’s price trading below its $1.34 realized price, suggesting psychological resistance is building.
• If accumulation resumes and CMF moves above zero, WIF could break out of the symmetrical triangle.

Solana-based meme coin dogwifhat (WIF) could be ready for another leg down despite already shedding 22% of its value in the past week. In late May, WIF’s price broke through the key psychological resistance at $1.

At the time, momentum seemed to favor bulls. But fast forward three weeks, and the tide has turned.

Today, WIF has plunged to $0.78, erasing nearly all its late-May gains.

In this analysis, CCN reveals the reasons behind WIF’s decline and explains why the memecoin may struggle to rebound.

WIF Continues to Bleed

Between Jan. 2 and May 29, WIF’s price attempted to create a U-shaped recovery on the daily chart. However, bears intercepted the move some weeks back, pulling the token down from $1.20 to $0.78.

As a result of this retracement, WIF now trades in a symmetrical triangle. However, instead of trading closer to the upper trendline, the memecoin is flirting with the lower support, indicating that a further breakdown is likely.

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Following the recent pullback, the Moving Average Convergence Divergence (MACD) has flashed a bearish signal, forming a downward crossover. In this case, the MACD line has slipped below the signal line, confirming growing bearish momentum.

If the current downtrend persists, WIF could lose its footing at the $0.78 support and slide further toward the next key support around $0.55.

Slide Threatens Critical Level

Furthermore, on-chain data from Glassnode reveals that WIF is trading below its realized price. At press time, WIF’s realized price is $1.34, while its market value is $0.78.

This divergence suggests that the realized price no longer serves as support but has flipped into a formidable resistance zone.

If this trend holds, it could place further downward pressure on WIF, making it even harder for the memecoin to recover recent losses.

WIF Price Analysis: Memecoin on the Edge

A closer look at the technical landscape reveals that WIF is struggling against overhead resistance, and one key reason is the positioning of the Supertrend indicator.

Typically, when the green Supertrend line sits below the price, it signals a bullish trend. However, on the WIF/USD chart, the red line hovers above the price, indicating that bearish momentum is in control.

As a result of this setup, WIF risks breaching the $0.72 support level. Adding to the downside pressure, the Chaikin Money Flow (CMF) has dropped below the neutral zero line, amplifying selling pressure.

If this bearish trend persists, WIF could slide to $0.56, aligning with the 0.236 Fibonacci retracement level. On the flip side, a surge in buying activity could lift the CMF back above zero, signaling renewed accumulation.

In such a scenario, WIF might break above the upper boundary of the symmetrical triangle pattern.

A confirmed breakout could open the door for a rally toward $0.98 at the 0.618 Fibonacci golden ratio.