After weeks under heavy selling pressure, Dogwifhat (WIF) is showing signs of a potential turnaround. The popular memecoin lost over 70% of its value since peaking at $2.22 in January, but recent indicators suggest that a strong recovery could be on the horizon.
From Collapse to Consolidation
Since its all-time high on January 3rd, WIF has dropped 74%, falling deep into a two-month consolidation range. It’s currently trading well below its realized price – the average price at which all holders last bought their tokens on-chain. That’s a sign many investors are underwater, with bearish sentiment dominating the market.
🔍 The MVRV ratio confirms this picture, currently sitting at 0.48 – and anything under 1 generally signals undervaluation and negative sentiment. In fact, WIF hit a historical low MVRV of 0.22 on April 8.
A Rebound in Sight? Three Bullish Catalysts Appear
Despite its bearish backdrop, WIF now shows three compelling signs of a potential 33% rally from the current price of $0.574.
🔹 1. Mid-range support bounce:
The price has recently bounced off the mid-range support level at $0.54, a classic signal within a range-bound market that suggests a move toward the upper boundary.
🔹 2. OBV indicates rising demand:
The On-Balance Volume (OBV) has broken above its April highs, signaling renewed accumulation and increasing buying pressure over the past two weeks.
🔹 3. Bitcoin’s short-term momentum:
Although less direct, a bullish trend in Bitcoin tends to lift altcoins across the board. If BTC continues to climb, it could carry WIF along for the ride.
Conclusion: Swing Traders Could Seize the Opportunity
While the broader outlook remains cautious and bears still loom large, swing traders may have a golden window. A push from $0.574 to the range high of $0.76 would represent a 33% increase, backed by growing volume and improving sentiment.
But caution remains key:
As a memecoin, WIF is highly volatile and sentiment-driven, so risk management is essential.
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