This Is Why Dogwifhat (WIF) Will Lose Its Place to PEPE

full version at beincrypto

Dogwifhat (WIF) price follows the bearish path after a long week of corrections, during which the meme coin fell out of a bullish pattern.

The additional skepticism among investors will likely contribute to the drawdown, bringing WIF to $2.

Dogwifhat Will Not See Investors’ Support

WIF price breakdowns result from the broader market cues, but this will extend due to the fear born among WIF holders. The liquidation of over $13 million worth of long contracts will drag bullish traders away from the meme coin.

As optimism drains, the bears will dominate the Futures market, and neither will participate for some time. Regardless, the negative impact will be borne by the WIF price.

WIF Liquidations. Source: Coinglass

It is finding it difficult to regain the bullishness it lost during the recent corrections. After bouncing back from the oversold zone, the Relative Strength Index (RSI) nearly breached the neutral mark at 50.0.

However, it failed to close above it, and a downtick was noted. This is a bearish development for the meme coin since initiating a recovery rally requires support from either the investors or the broader market cues.

dogwifhat RSI. Source: TradingView

Since dogwifhat has neither of the two at the moment, the likely outcome is that it will continue to decline on the charts. Presently, the total market capitalization of WIF is about $2.52 billion and continuously declining.

Right below it is Pepe (PEPE), which stands at $2.14 billion in the fourth spot. If the WIF price continues its downtrend, which is much larger compared to PEPE, it may not be long before the latter surpasses the former.

WIF Price Prediction: The Next Major Support Level

WIF price trading at $2.57 is presently trading above the $2.36 support floor. With the bearish cues getting stronger, it would not be surprising if this support is broken and WIF falls to $2.

This critical support level has been tested multiple times in the past, and losing it would mean considerable losses for the meme coin.

WIF/USDT 4-hour chart. Source: TradingView

On the other hand, if there is a chance that the support level remains unbroken and the WIF price bounces back from it. This would enable a $2.75 resistance level breach, invalidating the bearish thesis. A successful breach would lead to the WIF price reclaiming $3, boosting the recovery.