The cryptocurrency market has recently shown signs of recovery, rekindling hopes for a long-awaited bull run. Bitcoin (BTC) has spearheaded this upward trend, reaching a significant milestone of $65,000 and sparking a broader market rally. Among the altcoins, Dogwifhat (WIF) is gaining notable attention from investors, with technical analyses suggesting the potential for a doubling in its value in the upcoming weeks.
Why Are Memecoins Correcting?
Despite the overall positive market sentiment, data from CoinGecko indicates that memecoins have collectively experienced a 3.2% drop. Shiba Inu (SHIB) has been at the forefront of this decline, falling by 9% in the last 24 hours. This sharp decrease follows a significant hacking incident where over 5 trillion SHIB were stolen from the Indian cryptocurrency exchange WazirX. Other memecoins like Dogecoin, Mog Coin, Bonk, and Brett have also faced downturns, though some, including Popcat, Dogwifhat, and Pepe Coin, have still posted remarkable weekly gains.
What Does Technical Analysis Say About WIF?
Dogwifhat, a memecoin on the Solana Blockchain, began the week on a positive note, bouncing back from a crucial support level of $1.5 to reach $2.37. Several technical indicators highlight a bullish outlook for WIF. The 50-day Exponential Moving Average (EMA) at $2.19 suggests that buyers are in control, maintaining an upward momentum.
The Moving Average Convergence Divergence (MACD) indicator has confirmed a buy signal on the daily timeframe, reinforcing the bullish sentiment for WIF. This could lead to increased buy orders, potentially pushing WIF’s price above the critical $2.5 mark. However, to achieve its previous all-time high of $4.85, bulls must overcome a significant seller barrier at the blue descending trend line.
Key Inferences for Investors
Investors can derive several actionable insights from the current trends and technical indicators:
- WIF’s rise above the 50-day EMA suggests a sustained bullish trend.
- The MACD buy signal on the daily chart indicates a potential increase in buying pressure.
- Passing the $2.5 resistance level could lead to new highs for WIF.
- Golden Cross formations on the WIF chart suggest a shift to an uptrend.
Short-term analysis reveals that the SuperTrend indicator has reversed to follow WIF’s price, indicating increased potential momentum. As long as the SuperTrend line trails the price, WIF bulls are in a favorable position. Two recent Golden Cross formations on the WIF chart further support this bullish outlook. These occur when a short-term moving average crosses above a long-term one, signaling a potential shift from a downtrend to an uptrend. The presence of these formations on the four-hour chart suggests rising buying pressure and a bullish sentiment among investors. With these robust technical indicators, Dogwifhat is poised to potentially double its value and achieve significant gains in the near future.