This is Why Dogwifhat (WIF) Price Recovery Might Face Challenges
Dogwifhat (WIF) is currently facing difficulties in its efforts to regain traction and recover from recent losses. Unfortunately, the meme coin is not receiving support from investors or the broader market trends, further complicating its recovery.
Although the WIF price managed to hold its ground after bouncing off the $2.36 support level, it has been unable to surpass the $3.5 mark in recent days. This lack of significant progress can be attributed to the overall loss of bullishness in the broader market.
Adding to the challenge is WIF’s high correlation of 0.76 with Bitcoin. While such a correlation is typically seen as positive, in this case, it works against WIF’s recovery prospects. Bitcoin itself is struggling to halt its downtrend and may continue downwards until it tests the $60,000 support level once again.
As a result, altcoins, including WIF, are likely to experience a similar fate due to their strong correlation with BTC. Usually, asset holders can break this correlation by taking actions that drive up the token’s price. However, this strategy is unlikely to work for WIF as meme coin investors currently hold a pessimistic sentiment towards the asset.
The negative sentiment prevents them from actively participating in transactions or accumulating more of the asset, which is crucial for reversing the bearish sentiment.
Considering the existing market conditions, it appears that WIF may enter a consolidation phase soon, especially as the price fails to breach the $3.6 barrier. The Ichimoku Cloud indicator, which provides insights into support, resistance, trend direction, and momentum, currently suggests a bearish outlook in the coming days.
Therefore, the WIF price could potentially move sideways between the range of $3.62 and $2.36. However, if WIF manages to break above the upper limit of this consolidation range, it could invalidate the bearish thesis and potentially rise towards $4.0.
In conclusion, the path to recovery for Dogwifhat (WIF) faces several challenges, including the lack of investor support, the correlation with Bitcoin’s downtrend, and the pessimistic sentiment among meme coin investors. These factors suggest that WIF may have to navigate through a consolidation phase before it can make any significant price recovery.