The Dog Wif Hat coin ($WIF) is on the trajectory to surpass a market capitalization of $1 billion, such as Shib, Pepe, and Bonk. This analysis, which is purely for educational purposes and not financial advice, delves into the potential future movements of $Wif, hypothesizing a possible retracement before achieving significant market capitalization.
This discussion is structured around five critical levels that are considered pivotal for any cryptocurrency to achieve an all-time high (ATH). Currently, $Wif appears to be transitioning between Level 2 and Level 3. An initial comparison of $Wif with Shib, Pepe, and Bonk, based on 4-hour chart metrics, suggests a promising trajectory for $Wif.
Each of these cryptocurrencies exhibited unique patterns in their journey from Level 1 to Level 2. For instance, Shib displayed a volume of 442 million with 18 bars, Pepe had 158 million volume with 16 bars, and Bonk showed 53 million volume over 73 bars. Comparatively, $Wif registered a volume of 131 million across 31 bars, indicating a potential path towards a significant market cap.
However, the transition from Level 2 to Level 3 typically involves a retracement phase. Historical data from Shib, Pepe, and Bonk during this phase shows a volume decrease and a considerable percentage drop in value. For example, Shib experienced a 49% drop, Pepe a 65% drop, and Bonk a 48% drop. Applying an average of these movements to $Wif suggests a potential 55% decline to around 0.093 in approximately 40 hours.
After this retracement, the next phase involves moving from Level 3 to Level 4, which is characterized by breaking past previous ATHs over a period of 8 to 16 days. Previous trends have seen Shib, Pepe, and Bonk make significant percentage moves during this phase. If $Wif follows a similar pattern, it might achieve a 100% increase post the 55% retracement.
The final stage, moving from Level 4 to Level 5, is marked by price discovery and eventually reaching or surpassing the ATH. Historical data shows substantial volume increases and exponential percentage gains for Shib, Pepe, and Bonk during this phase.
As always, it's crucial for investors and enthusiasts to conduct their research too.