[Dogwifhat soars 60% weekly, but analysts warn of possible pullback]
Dogecoin-themed Dogwifhat (WIF) has recovered from falling below the $2 support zone this week and is now testing resistance at $2.5. The Solana-based meme coin returned over 2,000% in the first quarter of 2024, reaching an all-time high of $4.8 (ATH) in March, but has fallen 45% since then.
Still, investors remain optimistic about the meme coin, believing it has shown strong resilience after multiple corrections. Asad Saddique, CTO of Cryptonary, noted that the coin has survived multiple corrections exceeding 70%, solidifying its position in the Dogecoin market.
Currently, WIF surpasses Arbitrum to become the 38th largest cryptocurrency by market cap, with a market capitalization of $2.5 billion. This achievement was achieved on March 31 when WIF reached a market capitalization of $4.57 billion.
Cryptocurrency trader Bluntz believes that WIF will experience a sharp correction, possibly falling to the $1 range, but will then rise again to create a new all-time high. WIF fell from $2.6 to $1.51 following the market decline, but the coin has had a remarkable week, reclaiming the $2 support zone and showing green numbers on multiple time frames.
Cryptocurrency analyst Hornhairs said that if WIF can hold above the $2.2 price range, it could retest the $3 resistance. However, another market watcher, CrediBull, warned investors that there could be downside risks to Dogwifhat. CrediBull believes that memecoins are simply a highly volatile version of Bitcoin and that WIF will follow Bitcoin’s movements.
Overall, WIF's recent rally has been impressive, but investors need to be cautious about potential market volatility.
