Dogwifhat (WIF), the dog-themed sensation, has clawed its way back after dipping below the $2 support zone this week.

The Solana-based memecoin has flipped Ethereum's Layer-2 (L2) Arbitrum (ARB) and is eyeing the $2.5 resistance level.

Solana dog memecoin Dogwifhat (WIF) has clawed its way back after dipping below the $2 support zone earlier this week. The memecoin flipped Ethereum L2 Arbitrum (ARB) and is eyeing the $2.5 resistance level.

However, caution is advised as a crypto analyst warns of a possible retrace for WIF.

Bursting onto the scene as the memecoin sensation of 2024’s first quarter, Dogwifhat delivered returns of over 2,000%. The Solana token soared to an all-time high of $4.8 in March, although it has since declined by 45%.

Despite its pullback, investor sentiment remains bullish. Some investors argue that the token has shown resilience through its sharpest corrections.

“This token (WIF) withstood like 5 or 6 corrections of >70%,” said Asad Saddique, CTO of Cryptonary, in March. For Saddique, these retraces and challenges only solidified Dogwifhat's standing in the memecoin arena.

Furthermore, WIF flipped Arbitrum to become the 38th largest cryptocurrency by market capitalization, achieving a market cap milestone of $2.5 billion.

This achievement was first noted on March 31, when the token reached its previous all-time high and a market cap of $4.57 billion.

Last month, crypto trader Bluntz, who had made several bullish forecasts for WIF during Q1, shifted to a bearish outlook. According to Bluntz, a downward slide to the $1 range seemed “inevitable” based on past bullish trends.

He emphasized that WIF might undergo a substantial retrace before its next potential parabolic rise, which could elevate it to a new all-time high.

Following market fluctuations, Dogwifhat experienced a price dip exceeding 43%. On July 11, the token plummeted from $2.6 to as low as $1.51.

However, WIF staged a comeback this week, reclaiming the $2 support zone and showing positive growth across several timeframes.

Currently, WIF has surged 8% in the past 24 hours and is trading at $2.54. This represents a 60% increase over the week and a 25% increase over the month.

The recent price action has revived bullish sentiment, with crypto analyst Hornhairs indicating that the memecoin “looks solid.”

If WIF maintains its position above the $2.2 range, Hornhairs suggests that it could retest the $3 resistance level.

“WIF 2H still looks solid, left a lower high on the higher timeframes, and looks to be retesting the 3$ fib resistance again if it can hold 2.2$.”

However, caution exists among other market watchers. CrediBull warns that many are interpreting altcoin bounces, including WIF’s, as a sign of strength.

According to CrediBull, altcoins, and especially memecoins, are highly reactive to Bitcoin's movements. If Bitcoin rises or falls, Dogwifhat is likely to follow more dramatically.

CrediBull also points out that WIF has “left a triple bottom right below us” following a lower high on higher timeframes, indicating a potential 40% move back down to these triple lows.

“Many are looking at altcoins (like WIF) bouncing and thinking strength, but most are leaving lower highs on the 2H-4H timeframes. If BTC rises or falls, memecoins follow drastically. Leaving a triple bottom right below us on WIF 4H.”

The above is the detailed content of Dogwifhat (WIF), the dog-themed sensation, has clawed its way back after dipping below the $2 support zone this week.. For more information, please follow other related articles on the PHP Chinese website!