Dogwifhat (WIF), one of the standout memecoins of the past year, recently retested its former range high as support in early June. The price action yielded a sharp 26% bounce in just two days, signaling renewed bullish interest. However, WIF bulls now face a formidable resistance level at the previous week’s high, raising concerns about a potential bearish reversal.
The 1-day chart presents a cautious outlook for WIF. After rejecting the $1.18 resistance zone in mid-May, the token established a higher low at $0.93, only to face another rejection at the same resistance. This double failure culminated in a breakdown below $0.93 on May 31, shifting the structure to a bearish bias. Despite a recent rally attempt past the psychological $1 level, WIF failed to hold above it.
Key technical indicators reinforce this bearish sentiment. The Chaikin Money Flow (CMF) on the daily chart sits at -0.17, highlighting significant capital outflows. Additionally, the MACD hovers near the zero line, threatening a bearish crossover—typically a precursor to downward momentum.
On the lower timeframes, such as the 4-hour chart, a short-term bounce was observed from the $0.80 support. This recovery briefly pushed WIF past $1.04, hinting at a possible structure shift. However, a subsequent bearish engulfing candle followed by a drop in CMF below +0.05 suggests waning buying pressure and potential for a near-term pullback.
According to liquidation heatmap data, key liquidity zones lie just below $0.80 and around $1.08. A move toward the $0.80 level appears more likely unless Bitcoin (BTC) stages a strong rally. Conversely, a BTC-driven market push could fuel speculative interest and help WIF break above the $1.08 pocket.
Also Read: Dogwifhat (WIF) Price Soars 21% in 24 Hours – Is a Breakout to $1 Imminent?
In the short term, traders should monitor Bitcoin’s price closely. Without BTC’s support, WIF may revisit $0.80, offering a potential re-entry point for swing traders. A decisive break above $1 with sustained volume, however, could invalidate the bearish thesis.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
