As Bitcoin drops below $63,000, the broader market recovery takes a sharp blow at the start of the week. Amid the increased supply, WIF price action reveals a pullback, hampering the recovery run.
With a sudden landslide, WIF prices struggle to sustain dominance at critical support levels. Will the downfall in this meme coin result in a crash, or will a bullish recovery restart the uptrend?
Dogwifhat Price Performance
With a bullish trend in the 4-hour chart, the meme coin shows a triangle breakout rally. However, the uptrend fails to surpass the $2 mark, resulting in a pullback to retest the broken trendline.
Based on the Fibonacci levels, the $2 mark coincides with the 61.80% level and the pullback breaks below the 50% level at $1.79. Further, the recovery run led to an uptick in the 50 EMA, increasing the golden crossover chances. However, the pullback breaks below both the EMAs.
Currently, the WIF price trades at $1.72 with an intraday fall of 2.46%, making the third consecutive bearish candle. As supply pressure grows, the chances of a bullish reversal decrease.
Technical indicators:
EMA: Despite the limited chances of a golden crossover with an intense pullback, the 50 EMA holds the WIF price. Hence, the crucial dynamic support upholds the chances of a recovery.
RSI: The 4-hour RSI line slips under the halfway line as it crashes from the overbought zone.
Will The Comeback of Whales Push WIF Price Above $2?
In the last 48 hours, whales have been actively accumulating WIF tokens. The largest holder purchased 800,556 WIF tokens at $1.92 each, despite an 8.69% market drop. This whale now holds 28 million WIF tokens valued at $53.23 million, with a profit exceeding $75 million.
Another whale deposited $1.25 million in WIF on MarginFi, borrowing 197,000 USDC and buying 110,000 more WIF tokens, holding a leveraged position. This whale currently owns 3.3 million WIF tokens worth $5.95 million.
With whales’ increasing confidence, the chances of a bullish reversal in the WIF price trend also increase. If the price surges above the 50% level at $1.79, the next resistances are at $2 and $2.34. Conversely, a drop under $1.60 will test the $1.39 mark.
