This week, the popular dog-themed coin Dogwifhat (WIF) has recovered from a drop below the $2 support level. The Solana-based memecoin has upended Ethereum’s layer 2 (L2) Arbitrum (ARB) and is currently testing the $2.5 resistance level. However, one cryptocurrency analyst has warned investors that WIF could be in for a retracement.
WIF replaced Arbitrum today as the 38th largest cryptocurrency by market cap with a market cap of $2.5 billion.
The dog-themed memecoin has seen its price drop by more than 43% as the market tanked. Earlier this month, WIF dropped from a price range of $2.60 to $1.51 on July 11.
Nonetheless, it has performed extremely well this week. The coin reclaimed the $2 support area and is seeing green numbers on multiple timeframes.
Will it drop another 40% soon?
As of this writing, WIF has surged 8% in the past 24 hours and is trading at $2.54. This performance represents a 60% and 25% increase in weekly and monthly prices, respectively.
The recent price action seems to have reignited bullish sentiment towards the coin. The memecoin “looks solid.” If WIF stays above the $2.2 price range, a retest of the $3 resistance level is likely.
The current rally is “good” for us, however, if Bitcoin (BTC) rebounds or falls, Dogwifhat will “more strongly” follow the flagship cryptocurrency.
After making lower highs on higher timeframes, memecoin “left a triple bottom beneath us.” This indicated to traders that the coin “could subsequently drop 40% to make a triple low.”
WIF performance on the weekly chart
On the other side
After a year of intense scrutiny over its operations in the United States, Binance has finally received court approval to invest customer fiat funds in U.S. Treasury Bills (T-Bills). The decision has prompted a significant recovery in the price of the exchange’s native token, Binance Coin (BNB), pushing it to the $600 level.
BNB price breaks above 200-day EMA
Currently trading at $597, BNB has gained more than 5% on the news, having hit a low of $455 on July 5. However, the coin has also seen significant gains over the past two weeks as the overall market has recovered.
According to CoinGecko data, BNB has gained 12% and 20% in the seven-day and fourteen-day timeframes, respectively, while trading volume has increased by 47% in the past few days to $1 billion.
BNB has broken above its 200-day exponential moving average (EMA), as shown by the yellow line below the current price on the BNB/USD daily chart below.
Whenever the coin trades above this key indicator, the price will rise further as this line serves as a significant support for its price. Nonetheless, if the current price recovery continues, BNB will encounter resistance at the $610, $633, and $675 levels.
That’s all for today’s analysis. If you have any questions, please feel free to contact me.
Finally, Xiaoru wishes everyone to become rich soon!
If you buy at the bottom in this market, you might end up buying halfway up the mountain. If you don’t buy at the bottom, you might miss the chance to get on board!
In any industry, insiders make money from outsiders. If you don't understand the trend, investment strategy, or systematic investment method, you are welcome to learn from me. In the financial market with the most smart people, you can successfully dig for gold!
Welcome to find me by following my profile!
