Despite facing a significant decline, Dogwifhat (WIF) lost 12.42% to $3.85 recently, garnering the attention of crypto meme enthusiasts.

This drop was quite sharp, especially when compared to the overall 5.85% crypto market downturn, underlining the below-average performance of this token compared to the overall market movement.

Furthermore, it decreased by 8.31% against the crypto giant, Bitcoin (BTC), further emphasizing the bearish momentum in its trading activity on that day.

Even though there were losses that day, it's important to acknowledge WIF's impressive journey over the past weeks and months.

Data from CoinMarketCap shows a substantial upward trajectory, with this meme coin achieving a 200.07% increase in the last 30 days and a remarkable price increase of 2,167.87% over the past year.

The token reached its all-time high (ATH) at $4.80 on March 31, 2024, signaling significant growth potential and growing market interest in Dogwifhat.

The recent drop experienced by the WIF token in the last 24 hours is set against the backdrop of wider market fluctuations. The token opened trading at $4.41 and managed to rise slightly to its daily high of $4.48.

However, the tide quickly turned as bearish strength dominated, pushing the price down to a sharp low of $3.82. Stability seems to have been temporarily achieved, with the price fluctuating slightly above the $3.85 mark, but uncertainty in the situation remains.

Coin Edition reports that the recent decline in Dogwifhat's value could potentially worsen if bearish pressure continues relentlessly, threatening to break through the nearest support set at the intraday low.

Conversely, a bullish revival could challenge the day's peak, potentially setting it as a strong resistance point.

The future trajectory of the token is now at a crossroads, depending on these critical levels as traders and investors alike monitor which direction WIF will take next.

Technical Analysis

In the 4-hour chart, the WIF token shows significant volatility, navigating between the all-time high of $4.80 and a concerning two-week low of $1.95.

After reaching its peak, the token entered a distinct bearish phase, with its price challenging the 78.6% Fibonacci retracement level, a critical indicator for traders.

The market is currently at a critical point. If the price of the WIF token closes below the 78.6% Fibonacci level, it is expected to decline towards the 50% Fibonacci level at $3.10, potentially establishing a new support zone.

Conversely, closing above this critical level could propel the token towards the all-time high and possibly surpass it, introducing a new phase of growth.

Further bearish momentum is confirmed by technical indicators. The Moving Average Convergence Divergence (MACD) indicator shows a downtrend, with the MACD line at 0.1034 below the signal line, suggesting the potential for a sustained bearish movement.

This is reinforced by the expanding red histogram bars below the zero line, depicting a clear picture of the prevailing market sentiment.

Similarly, the Stochastic Relative Strength Index (RSI) indicator highlights a bearish trend with a reading of 10.67 below the signal line and deeply embedded in the oversold territory.

These conditions typically indicate an oversold market and therefore, could precede a momentum shift.

This signals traders to be vigilant for potential signs of a reversal or a resurgence in Dogwifhat price action before making trading decisions.