- WIF has navigated stiff volatility, achieving a notable milestone along the way
- And yet, bearish pressure remains high, posing ongoing challenges
With an impressive jump of over 10% in just 24 hours, dogwifhat [WIF] has claimed the top-gainer spot, leaving over 100 major cryptocurrencies in its dust. WIF was trading at $2.51, at press time. By doing so, the coin bounced back after a rocky start to October, which saw it close near $2.30.
However, for a parabolic rally to $3, it’s crucial to flip its current resistance into support. Right now, the resilient RSI backs this potential. Especially since this suggested that buying strength has not yet run out. Hence, the question – Will other conditions align too?
WIF achieves a significant milestone
Selective memecoins have built a robust base of holders over the years, despite their inherent risks. This shift shows that investors are increasingly drawn to volatile tokens for outsized returns in a short time.
WIF, with a holder count of 186,393, exemplifies this trend. Only 8.2% of its tokens are distributed among the top 10 holders.
Source: X
While a more concentrated token can increase the potential for coordinated selling pressure, WIF’s rising decentralization mitigates the chances of a sudden price swing. This dynamic becomes even more significant as the market anticipates a memecoin supercycle by the end of Q4.
WIF may emerge as a frontrunner, as a strong parabolic rally typically demands less buy-sell imbalance.
Thus, a more significant surge in WIF’s value may highlight confidence among stakeholders. However, it doesn’t immunize WIF from bearish pullbacks. This substantially reduces the potential for extreme volatility.
A crucial road ahead
As WIF approaches its previous rejection level at $2.59, it has largely compensated for the gains lost during its retracement to the $2.30 level. This means that most holders are now in a net profit position.
While this is a bullish signal, WIF may still see a short-term price correction as traders look to cash-in on their gains.
However, this trend might reverse itself if selling pressure is neutralized and traders view $2.30 as a strong support level. This is likely to create ideal dip-buying opportunities.
Source: Coinalyze
The bulls must maintain the $2.50 price point firmly. An important MACD convergence is imminent, leaning towards a bearish outlook.
Historically, such crossovers have been significant in identifying potential market tops. If this pattern holds, the next price correction could push WIF back below $2.30.
Additionally, with selling pressure increasing after last week’s surge positioned WIF as the fifth top gainer, short positions may gain control.
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If this trend holds, a parabolic rally to $3 could require another cycle. Especially as forced closures of long positions could lead to a steep decline in WIF’s price.
Thus, WIF needs an intervention to absorb this pressure and establish $2.30 as a support level. Otherwise, a retracement seems more likely.
