During the prior month, the memecoin known as dogwifhat [WIF] exhibited a consistent upward trend, making it the fourth largest memecoin by market capitalization. Over the course of the month, WIF surged by 35.69%, climbing from a low of $1.38 to $2.63.
However, in the most recent week, there was a slight decrease in WIF’s value. Presently, WIF is trading at $2.15. This signifies a 0.04% decline when observing monthly charts, with a significant 11.86% drop within a 24-hour period.
Given the current market conditions, there’s uncertainty regarding whether WIF will recover to surpass its previous monthly high or if the bearish trend will endure.
Decode Trading, a prominent crypto analyst, has indicated that WIF is expected to continue its upward trajectory, citing the Elliot wave theory.
Market Analysis
Decode’s analysis suggests that WIF has likely completed wave 2 and is now progressing in wave 3. In this scenario, wave 3’s structure implies that wave 4 has concluded and wave 5 is still in progress, having already retested the daily channel.
This completion of wave 2 signifies the end of the recent market correction.
Wave 3, being historically the strongest wave, is currently in play. The wave’s internal structure indicates that wave 4 has finalized, with wave 5 expected to drive prices higher.
The successful retesting of a key support level by WIF reinforces the bullish outlook.
Examining WIF’s Fundamentals
While the Elliot wave analysis suggests a reversal from the recent pullback, evaluating the underlying fundamentals becomes crucial.
Initially, an analysis of WIF’s supply and demand dynamics through the Spot Netflow metric revealed a negative shift three days ago, indicating a reduction in the coin’s supply on exchanges.
This shift lessens selling pressure, reflecting optimistic sentiment among investors who are inclined to hold their positions in anticipation of further gains.
Moreover, WIF has maintained a positive total funding rate over the past seven days, indicating a rise in capital inflow into WIF as investors bet on price appreciation.
Furthermore, the demand for long positions is reinforced by a positive OI-weighted funding rate, with those taking long positions demonstrating a readiness to pay for their positions.
Although WIF has encountered a decline on daily charts, it remains well-positioned for long positions.
Therefore, should the current market sentiment persist, it is likely that dogwifhat will target the $2.33 resistance level in the near term. A successful breakout at this level could propel WIF to $2.63. Conversely, a further downturn could see WIF finding support at $1.90.