Meme coins have been experiencing a downturn in recent weeks. As reported by Coingecko, the cumulative market cap for all meme coins is currently about $42 billion.
Dogecoin continues to hold its title as the most valuable meme coin, boasting a market cap exceeding $15.4 billion, followed by Shiba Inu, which has a market cap of around $8 billion. The past few months of trading have been turbulent for meme coins, with their total valuation dropping from over $65 billion in the second quarter of 2024.
WIF in Trouble: Could It Be the “Most Bearish Meme Coin”?
Despite Bitcoin’s recent upward movement, which could potentially lift significant altcoins like Solana and various meme coins, an analyst holds a pessimistic view on DogWifHat (WIF). According to Coingecko, WIF ranks among the leading meme coins on Solana, with a market cap surpassing $1.5 billion and placing it within the top five.
Although WIF has surged more than 98,000% after hitting all-time lows of $0.00155 in December 2023, it has fallen by 68% from its recent all-time highs. The price of WIF soared due to the expansion of Solana and the meme coin frenzy that gripped the market in the year’s first half.
The analyst now anticipates that WIF may see further declines in the upcoming sessions. This forecast stems from the observed pattern in its chart, which indicates consistent weakness. Based on the current alignment of the WIFUSDT chart, the analyst claims that WIF could be the “most bearish among major meme coins.”
Optimism for Bulls If Bitcoin Recovers; DogWifHat Faces Resistance at $2
There is a glimmer of hope that WIF could rebound and take advantage of a broader market recovery; however, its current bearish trend dampens that optimism. The analyst’s evaluation suggests that purchasing the meme coin at current prices is fraught with risk. Traders might consider acquiring WIF only after it breaks free from the descending wedge observed in the daily chart.
In summary, WIF has declined nearly 50% since its July peaks. Despite a recovery following a bounce in early August, buyers failed to generate enough momentum to recover losses. The immediate resistance level stands at $1.99, while support is at $1.30.
For an uptrend to materialize, WIF bulls need to surpass the $2 mark, ideally backed by increasing trading volume. This could potentially set the stage for an upward move that might push the token as high as $3—or even back to its July highs in a continuation of bullish momentum.
