Market Direction

WIF struggles at $1.96 after rejection

Published: Jan 28, 2025

Dogwifhat’s price action remains weak after rejection at $1.96, with RSI hitting oversold levels. The $1.00-$1.20 zone is crucial for support. Will WIF bounce back soon? Let’s dive into the technical and market outlook.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

WIF made a breakout of the local downtrend line, which shoved the price into the $1.96 horizontal resistance.
The price was then rejected from there, and it lost the key horizontal level of $1.60.
Price has now reached/touched our Yellow Target Box, as we called for over a month ago.
The RSI is very oversold, and even though we've had some bullish divergences form, they haven't led to more substantial breakouts.
Currently, the RSI is very oversold in the daily timeframe. The last time this was oversold was August 5th (Yen Carry trade unwind).
We are looking for the $1.00 to $1.20 area to become a new zone of support.

7. Dogwifhat (WIF) price chart showing downtrend, key support zones, resistance levels, and RSI indicating oversold conditions on the daily timeframe.

Next Support: $1.00
Next Resistance: $1.60
Direction: Neutral/Bearish
Upside Target: $1.40
Downside Target: $0.90

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Cryptonary's take

WIF has really underperformed, unfortunately. However, it's now so oversold that it's not an attractive sell at these prices. But the journey going forward may be a tricky one as we're not expecting a straight move back up to the highs.

What we're currently looking for here is for a rounding bottom to be formed, and we think that can be in the Yellow Box. If we get this, that might be the base that's needed for the price to then get a more substantial bounce. For now, it's wait and see.