The cryptocurrency market is showing signs of stabilization after a sharp correction on January 13, 2025. Bitcoin ($BTC ), which briefly dropped to a low of $89,216, has since rebounded and is currently trading above $95,000. This recovery has provided an opportunity for prominent memecoins such as Dogwifhat ($WIF ) and Popcat ($POPCAT) to defend critical support levels, suggesting potential for future rallies.
Both tokens have experienced significant declines over the past 30 days, with WIF and POPCAT falling by 45% and 48%, respectively. These drops have pushed their prices to crucial support zones, historically preventing further declines and potentially setting the stage for recoveries.
Dogwifhat (WIF)
Dogwifhat (WIF) witnessed a steep 70% correction from its November 13 high of $4.79, reaching a low of $1.36. The token has since found strong support at $1.36, a level that has previously served as a safeguard against deeper downturns. At present, WIF is trading at approximately $1.50.
The Relative Strength Index (RSI) on the daily chart indicates a recovery from oversold levels, suggesting a possible continuation of the rebound. Should WIF maintain this support, the token could target the next resistance level at $2.23, representing a potential upside of nearly 50% from its current price.
Popcat (POPCAT)
Similarly, Popcat (POPCAT) experienced a sharp 77% decline, dropping from its all-time high of $2.08 to a low of $0.49. The token has now found support along a key ascending trendline, which has historically acted as a foundation for strong recoveries during previous corrections. As of now, POPCAT is trading at $0.5590.
The daily RSI suggests that POPCAT is approaching oversold territory, potentially signaling the beginning of a recovery. If this support holds, POPCAT may look to rally toward its next resistance at $1.00, offering a potential upside of approximately 80% from its current level.
Is a Bounceback on the Horizon?
Both WIF and POPCAT have managed to retain their key support zones, and the daily RSI indicators show early signs of recovery. Furthermore, Bitcoin's recent stabilization within the $91,000 to $94,000 range, along with its current position above $95,000, offers a favorable environment for a broader market rebound.
If Bitcoin can maintain its momentum and break above the $96,000 threshold, this could facilitate a wider market recovery, thereby increasing the likelihood of short-term rallies for both WIF and POPCAT.
