Dogwifhat Price Forecast: WIF bounces off $1 key level

Dogwifhat (WIF) price trades 20% higher, above $1.26 on Wednesday after it retests its psychologically importance level of $1 the previous day. WIF’s Relative Strength Index (RSI) momentum indicators bounce off from its oversold conditions, signaling a potential shift in momentum as selling pressure eases, allowing for a possible recovery.

Dogwifhat price finds support around the $1 level

Dogwifhat price closed below the weekly resistance of $1.44 on January 20 and declined 24.15% until Monday. However, it rebound after retesting its key psychologically important level of $1 on Tuesday. At the time of writing on Wednesday, it trades higher by nearly 20%, around $1.26.

If the $1 support level holds and WIF closes above $1.44, the weekly resistance. It would extend the recovery to retest its next daily resistance at $1.83.

The daily chart’s Relative Strength Index (RSI) has bounced from oversold conditions. It now reads 37, signaling a potential shift in momentum as selling pressure eases, allowing for a possible recovery. Moreover, the Moving Average Convergence Divergence (MACD) indicator is also converging. If the MACD flips to a bullish crossover on a daily basis, it would give a buy signal and suggest an upward ahead.

WIF/USDT daily chart

Another bullish outlook is that Dogwifhat announced on its X account Wednesday that it will promote WIF on the Vegas Sphere. This announcement indicates a committed user base that believes in the project’s future potential and shows strong community support for WIF.

However, if the WIF daily candlestick closes below its psychologically important level of $1, the bullish thesis would be invalidated, leading to a further price decline to test the $0.9 level.