Meme coins are collapsing! Dogecoin and Shiba Inu are also falling. Is WIF facing the ultimate test? Can this big drop reverse?
Among them, Dogecoin is still the most valuable, with a market value of more than $15.4 billion, followed by Shiba Inucoin, with a market value of about $8 billion. The past few months have seen quite volatile trading for meme coins, with their valuations falling sharply from more than $65 billion in the second quarter of 204.
Despite signs of a turnaround in Bitcoin, which could drive the rise of top altcoins and meme coins such as Solana, one analyst is bearish on DogWifHat (WIF). According to Coingecko data, WIF is one of the most popular meme coins on Solana, with a market value of more than $1.5 billion, ranking in the top five.
Although WIF has risen more than 98,000% since its all-time low of $0.00155 in December 2023, it is still down 68% from its recent all-time high. This wave of gains was mainly driven by the expansion of Solana and the memecoin craze in the first half of the year.
However, analysts now predict that WIF may fall sharply in the coming trading days. The reason is that the chart pattern shows that this trend has been in a weak state. According to the analysis of the WIFUSDT chart, analysts believe that WIF may be the most pessimistic of all major memecoins.
Although everyone is optimistic that WIF may rebound and benefit from the market recovery, the current bearish structure has discounted the optimism. Analysts say that there is a certain risk in buying this memecoin directly at the spot price at present. The only buying opportunity worth considering is when WIF breaks out of the descending wedge pattern, which is obvious on the daily chart.
To summarize, WIF has fallen nearly 50% from its high in July. Although the price has recovered in early August, buyers have not yet formed enough momentum to reverse these losses. The current immediate resistance level is $1.99, while the support level is at $1.30.
For an uptrend to form, WIF bulls need to break above the $2 resistance level, preferably accompanied by an increase in trading volume. If this breakout occurs, it could open up another upside opportunity for the token price, which could eventually see prices rise to $3, or return to the July highs, forming a bullish continuation pattern.
