This week, the popular dog-themed token Dogwifhat (WIF) has seen a recovery after dropping below the $2 support level. This Solana-based memecoin has surpassed Ethereum’s Layer-2 (L2) Arbitrum (ARB) and is currently testing the $2.5 resistance mark. Despite this positive movement, a warning from a crypto analyst suggests that there may be a potential retrace for WIF in the near future.
### WIF Puts Its Hat Back On
Dogwifhat gained immense popularity in the first quarter of 2024, delivering returns of over 2,000% earlier in the year. While reaching an all-time high of $4.8 in March, the token has since experienced a 45% decline. However, investors are still optimistic about this memecoin, with some noting its resilience during significant corrections. Asad Saddique, the CTO of Cryptonary, pointed out that Dogwifhat has weathered multiple corrections exceeding 70%, solidifying its position in the market.
An interesting development is that WIF has flipped Arbitrum and now ranks as the 38th largest cryptocurrency by market capitalization, boasting a market cap of $2.5 billion. This milestone was initially achieved on March 31 when WIF reached its ATH and a market cap of $4.57 billion.
The recent performance of Dogwifhat has been noteworthy, with the token reclaiming the $2 support level and showing positive movement across different timeframes.
### Will It Shred Another 40% Soon?
In the past 24 hours, WIF has surged by 8% and is currently trading at $2.54. This represents a 60% and 25% price increase in the weekly and monthly timeframes, respectively. The recent price action has reignited bullish sentiment towards the token, with some analysts suggesting that WIF could potentially retest the $3 resistance level if it maintains its price above $2.2.
However, there are cautionary voices in the market as well. CrediBull warned investors about a possible downside for Dogwifhat, citing the high correlation between altcoins and Bitcoin (BTC). The analyst emphasized that altcoins, especially memecoins, are highly influenced by BTC’s movements, and the current bounce in WIF might be short-lived if BTC experiences a significant change in price.
As the market continues to evolve, traders and investors are advised to closely monitor the price movements of Dogwifhat and be prepared for potential volatility ahead. Keeping a close eye on Bitcoin’s movements can also provide valuable insights into the future performance of memecoins like WIF.
