NOIDA (CoinChapter.com) — The Dogwifhat (WIF) token is a canine-themed memecoin, a Shiba Inu wearing a knitted beanie, and was inspired by Dogecoin. It has had a very bullish 2024, with the token’s price rallying to a new ATH on March 6.

WIF’s price action in 2024 saw the token rally more than 1,410% YTD to reach a daily high near $2.27 on March 6, marking a new ATH for Dogwifhat.

Bitcoin’s rally in 2024, fueled by increased demand from spot Bitcoin ETFs, made the general crypto market sentiment bullish, allowing fringe tokens like WIF to register massive gains.

Traders who missed booking profits through other tokens have invested in small-cap crypto assets like memecoins, pumping demand to increase gains. But is it the right time to buy some WIF tokens?

WIF Gears Up For Massive Correction

The short answer: No.

WIF prices have been on a bull run since Jan. 2024, charting higher highs. As a result, the token’s price action has painted a technical pattern called the ‘ascending channel.‘

Traders consider the pattern bullish, with the rising parallel trendlines connecting higher highs and higher lows, signifying bullish market sentiment. However, the WIF price is testing the pattern’s upper trendline resistance.

WIFUSD daily price chart with RSI. Source: Tradingview.com

A rebuttal from the upper trendline would likely result in WIF price dropping below the 0.618 Fibonacci support near $1.55. Moreover, breaching the immediate support might push the Dogwifhat token price to the 0.786 Fibonacci support.

The downtrend could result in WIF testing the channel’s support near $0.56. WIF price would lose over 70% of its value if the token drops to the channel’s support.

On the other hand, if the WIF price continues to rally, the token could break out of the ascending channel to target the resistance near $2.3. Flipping the immediate resistance could also help WIF paint a new ATH near the supply wall around the $2.73 price region.

The relative strength index, or RSI, remained overbought for WIF, scoring 85.08 on the daily charts.

What Is the Dogwifhat Token?

The Dogwifhat token is a novel crypto project, with no aims, no goals, no use cases, and likely nothing else. The project’s developers took a Shiba Inu (the dog, not the token), clicked or downloaded its photo, and dropped a hat on the dog’s head.

Dogwifhat manifesto on its website’s landing page.

Boom! A new crypto project.

While it may sound satirical, this is exactly how the project defines itself: “Bro! It’s literally a dog wif [with] a hat.“

Moreover, the project has no defined tokenomics, though CoinMarketCap has stated that Dogwifhat has a total circulation supply of 999 million tokens.

The post The Dogwifhat Token Has Exploded 1,400% So Far in 2024 — Still a ‘Buy’? appeared first on CoinChapter.

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Filed under: Bitcoin - @ March 7, 2024 1:02 am