Meme coins have been experiencing a downward trend in recent weeks. According to Coingecko, the total market capitalization of all meme coins stands at approximately $42 billion. Dogecoin remains the most valuable meme coin with a market cap exceeding $15.4 billion, followed closely by Shiba Inu, which holds a market cap of around $8 billion. The market has witnessed a tumultuous few trading months, with the overall valuation of meme coins plummeting from over $65 billion in Q2 2024.
DogWifHat (WIF) Struggling: Is This The “Most Bearish Meme Coin”?
Despite the broader cryptocurrency market showing signs of recovery, with Bitcoin leading the charge, one analyst remains bearish on DogWifHat (WIF). WIF, one of the top meme coins on the Solana blockchain, commands a market cap of over $1.5 billion, securing its position in the top 5 meme coins.
WIF has experienced a meteoric rise of over 98,000% after hitting all-time lows of $0.00155 in December 2023. However, it is currently down 68% from its recent all-time highs. The token’s price surge was fueled by Solana’s expansion and the meme coin craze that dominated the industry in the first half of the year. Despite this, the analyst predicts a potential downturn for WIF in the upcoming sessions. The current chart pattern indicates persistent weakness, leading the analyst to label WIF as potentially “the most bearish of all major meme coins.”
Bulls Have A Chance If Bitcoin Recovers, DogWifHat Faces Resistance At $2
There is a silver lining for WIF investors, as some market analysts believe that WIF could benefit from a broader market recovery led by Bitcoin. However, the current bearish structure dampens optimism. According to the analyst’s assessment, purchasing WIF at current spot prices is deemed risky. Traders are advised to consider buying only if WIF breaks out from its current descending wedge pattern, as evident in the daily chart.
To summarize, WIF has seen a decline of nearly 50% from its July highs. Although there was a recovery in early August, the momentum was insufficient to reverse the losses. The immediate resistance level stands at $1.99, while support is found at $1.30.
Key Levels To Watch
For the uptrend to gain traction, WIF bulls must break above the $2 resistance level, ideally accompanied by increasing trading volumes. This breakout could set the stage for another upward leg, potentially driving the token’s price to as high as $3, or even revisiting its July highs in a bullish continuation pattern.
