Dogwifhat Crashes 17% as Bulls Meet Fierce Resistance at $1.33

• Dogwifhat price has gone down by 17% in the last 24 hours, indicating bearish momentum.
• Despite facing bearish pressure, WIF price is still trading above the key EMA levels.

Dogwifhat (WIF) has been experiencing a lot of selling pressure since it has been rejected strongly by the critical long-term resistance level of $1.3348. As per CMC data, this refusal has caused a significant correction, as the memcoin has fallen by about 17% over the past 24 hours and 22% over the past two trading sessions, which testifies to the power of the resistance zone and the new bearish mood in the market.

However, the recent price movement demonstrates that WIF is trading above both the major EMAs, where the 200-day EMA stands at $1.0409 and the 50-day EMA at $0.9600. Although the resistance was rejected in the recent past, WIF is still above these dynamic support levels, implying that the trend structure underlying is still in place

The 200-day EMA at $1.0409 remains a vital support level, serving as a platform that might constrain the further decline and even allow the recovery.

What’s Next For WIF Price?

Source: TradingviewTechnical indicators show a mixed, but worrying, situation for buyers. The MACD is still positive, which means that the general momentum is not yet entirely turned to the bearish side. However, the MACD curve has started to turn downwards a bit, suggesting that the bullish momentum is losing steam and that a possible bearish crossover may be forming. This is an early sign that selling pressure might still be gathering momentum in the forthcoming sessions.

WIF is neither oversold nor overbought, as the RSI value of 54.53 is in the neutral range. This implies that there is still some more downside to go before it can be considered oversold and thus attract some buying interest

Interestingly, the social sentiment indicator is still positive even after the recent price drop, which means that market participants can still be optimistic regarding the long-term prospects of WIF.

In the future, the most influential support area to monitor is at the level of $1.0409, which coincides with the 200-day EMA. A break below this level would create a decisive move and may create further selling pressure, which may result in a test of lower support areas at $0.9600

On the other hand, any recovery will have to recapture the resistance of the $1.3348 to reject the existing bearish formation. Volume patterns and momentum indicators are the other factors that traders need to watch closely because the ongoing correction can pose a threat to open positions and also be an opportunity for patient investors who are looking to make strategic entries into this volatile meme coin.

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