In a market movement, DogWifHat’s WIF token experienced a sharp increase, reaching a high of $41.85 on Bybit.
This spike came just minutes after the memecoin was introduced on the exchange platform. Initially priced at $2.70, the token surged by 1,450%, demonstrating a volatile trading pattern. However, this notable price increase was brief and isolated to Bybit.
NEW: @solana MEMECOIN $WIF (@dogwifcoin) WICKED PAST $40 ON @Bybit_Official SHORTLY AFTER SPOT LISTING pic.twitter.com/R9qHrNGNzC
— DEGEN NEWS 🗞️ (@DegenerateNews) April 29, 2024
The surge did not impact other major exchanges, such as Binance, where a third of the token’s trading occurs. Soon after the spike, WIF’s price adjusted back to align with the general market trends. As of this publication, the token was trading down by 3.5%, with a price of $2.648.
WIF/USD 24-Hour Chart (Source: CoinStats)
Despite the quick reversal in its trading price, the market capitalization of DogWifHat’s WIF also reflected a decrease, falling by 3.40% to reach $2,645,088,044. Contrastingly, the trading volume told a different story. It registered a substantial increase of 43.51% over the past 24 hours, totaling $311,233,657. This suggests a heightened level of activity from traders and investors, possibly aiming to capitalize on the fluctuating prices.
WIF Price Action
The WIF token has displayed a bearish trend on the 4-hour chart, consistently breaking past previous support levels while failing to sustain new highs. As of press time, the token is positioned at a support level of $2.64.
WIF/USDT 4-Hour Chart (Source: Tradingview)
Should this bearish momentum persist, it is likely that this support will give way, potentially leading to a further price decline. The immediate target in such a scenario would be the 38.2% Fibonacci retracement level, with a possible further slide to support near the 23.6% Fibonacci level. A breach here could press prices down to the critical two-week support level.
Conversely, if the market conditions favor bullish trends, there is potential for the price of WIF to rally. Such a movement would involve surpassing current levels to challenge the 61.8% Fibonacci level, which currently acts as a moderate resistance zone. Overcoming this could set the stage for a push towards a key resistance at $3.20, near the 78.6% Fibonacci level, marking a critical target for bullish traders.
Bearish and Bullish Scenarios Unfold
In terms of technical indicators, the Relative Strength Index (RSI) is currently at 40.31, trending below the neutral 50 mark, which supports the short-term bearish outlook for the token. This positioning suggests there may still be room for further downward movement before the token finds stronger support.
WIF/USDT 4-Hour Chart (Source: Tradingview)
Additionally, the Moving Average Convergence Divergence (MACD) is below the zero line at 0.077, reinforcing the prevailing bearish sentiment in the market. However, a potential crossover of the MACD line above the signal line hints at an upcoming reversal to bullish momentum.
This is further supported by the histogram bars, which, while still in the negative territory, are inching closer to the zero line, signaling a shift from bearish to potentially bullish momentum. This observation could represent a potential buying opportunity for traders looking to capitalize on lower prices before a possible uptrend.
