The price of Dogwifhat (WIF) reached its highest level since March 2024 earlier this month, marking an astonishing increase of 1,386% this year. However, WIF faced a correction, dropping about 11% in the past 24 hours as strong bearish trend signals are intensifying.
Momentum indicators like the Ichimoku cloud and ADX are indicating a strong downtrend, with sellers dominating the market. Whether WIF can hold key support levels or regain enough strength to test resistance will determine its short-term trajectory.
Dogwifhat: The Ichimoku cloud indicates a strong bearish configuration.
The Ichimoku chart of WIF shows a clear downtrend as the price has broken below the Kumo cloud and all the main components of Ichimoku. The conversion line (blue) has crossed below the baseline (red), generating a bearish signal. The lagging span, displayed in green, has also moved down significantly, indicating strong downward momentum.
Since the beginning of December, the price action has consistently created lower highs and lower lows, with the latest move showing a sharp decline.
WIF Ichimoku Cloud. Source: TradingView
In early December, the cloud structure transformed from a green support cloud into a red bearish cloud, with Leading Span A (red) crossing below Leading Span B (orange). The color change of the cloud and its expansion suggest increasing bearish pressure.
The price trading significantly below the cloud, with all Ichimoku components arranged above the current price – the conversion line, the baseline, and both cloud gaps – indicates that the strong downtrend is likely to continue unless the price can recover at least to the level of the conversion line.
WIF: The ADX indicator shows the current downtrend is strengthening.
WIF's ADX is currently at 38, up from 36 yesterday, signaling a strong and increasing trend. However, with WIF in a downtrend, the rising ADX indicates that the downward momentum is strengthening. This suggests that the downward movement is likely to continue as sellers remain dominant in the market.
ADX (Average Directional Index) measures the strength of price trends without indicating its direction. An ADX above 25 indicates a strong trend, while a reading below 20 suggests a weak or non-trending market.
With dogwifhat's ADX at 38 and its current downtrend, the price may face further declines in the short term unless buying activity emerges to counteract the downward momentum. If sellers continue, WIF's price may continue to drop before finding stability.
Dogwifhat price prediction: Can WIF return to $4 by 2025?
WIF's EMA lines are currently displaying a bearish configuration, with the short-term EMA below the long-term lines. This structure suggests continued downward pressure, and WIF is likely to test support at $2.19.
If this level cannot hold, WIF's price could decline further, potentially reaching $1.88 as the next key support level.
WIF Price Analysis. Source: TradingView
On the other hand, if WIF's price can reverse the downtrend and regain positive momentum, it could challenge the resistance level at $2.91.
A successful breakout above this level could pave the way for further gains, with a target at $3.47 and possibly even $4 if the uptrend strengthens.
