WIF price likely to crash 16% as bears gain momentum
- Dogwifhat price broke the key daily support level at around $3.182.
- WIF price could have a relief rally to fill the imbalance, stretching from $3.152 to $2.888.
- A daily candle stick close above $3.182 would invalidate the bearish thesis.
Dogwifhat (WIF) price gave a bearish outlook after breaking below its key support level at $3.182 on Friday. The Solana-based meme coin could have a dead cat bounce situation before continuing its bear market rally.
Dogwifhat price likely to have a dead cat bounce
Dogwifhat price plummeted by 20% after breaking below the daily support level of $3.182 on Friday. This Solana-based meme coin may experience a dead cat bounce, a brief and sharp price increase during an overall downtrend. This relief rally could address the price imbalance between $3.152 and $2.888. If the market outlook does not improve, WIF could face rejection at the midpoint of this imbalance, around $3.014. Such a development could trigger a 16% crash and retest the daily support level at $2.525.
Supporting this theory of a potential upward draft followed by rejection is the Relative Strength Index (RSI), which is currently around 33.89, just above the oversold threshold of 30. This suggests that bearish pressure might ease temporarily, allowing for a relief rally before the WIF price resumes its downward trend.
WIF 4-hour chart
However, if a WIF daily candlestick closes above the $3.182 level, it will create a higher low on the daily chart, signaling a bullish market structure. This development would invalidate the bearish outlook and could trigger a potential 6% rally, reaching a daily high of $3.357 from June 7.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
