beincrypto.com
Dogwifhat (WIF) is finding it challenging to continue rising on the charts and recover from the recent losses.
To make things worse, the meme coin is not finding any backup from investors or the broader market cues.
Dogwifhat in a Bind
WIF price has managed to stay afloat after bouncing off from the support at $2.36 but failed to cross $3.5 in the last few days. This is likely owing to the broader market cues losing their bullishness.
Additionally, WIF shares a high correlation of 0.76 with Bitcoin, and while that is generally a positive factor, it is not. This is because Bitcoin finds it difficult to stop the downtrend and could continue until it tests $60,000 as support again.
Consequently, the altcoins will also bear the same fate, especially the likes of WIF, which are highly correlated to BTC.
Sometimes, asset holders can break this correlation by boosting the token’s price through their actions. However, this is not true with WIF since the meme coin investors are not optimistic. Derived from the weighted sentiment, WIF holders appear rather pessimistic about the asset.
This refrains them from making transactions on the network or accumulating more of the asset, which is key to breaking the bearish spell.
WIF Price Prediction: Consolidation Ahead
Based on the market’s conditions and the WIF price failing to breach the $3.6 barrier, it seems like the meme coin could enter consolidation soon. The Ichimoku Cloud is above the candlesticks, exhibiting potential bearishness in the coming days.
This indicator provides insights into support, resistance, trend direction, and momentum; presently, all signs are negative. Thus, the WIF price could move sideways between $3.62 and $2.36.
If it manages to breach the upper limit of the consolidation, though, the bearish thesis would be invalidated, enabling a rise toward $4.0.