Dogwifhat Plummets 24%—Here’s How Traders Can Play the Dip

Memecoin mania takes a breather as WIF nosedives—but volatility breeds opportunity for the bold.

Buy the blood or get rekt? Solana’s favorite joke token tests trader conviction after a brutal sell-off.

Pro tip: Watch for leverage liquidations and whale accumulation patterns. Just don’t blame us when the ‘fundamentals’ turn out to be a Shiba Inu wearing a hat.

WIF reset offers buyers a chance to re-enter

Source: WIF/USDT on TradingView

The 1-day chart showed a bullish swing structure for dogwifhat. It had formed a range in March and April, and at press time, remained above those highs at $0.77. The 20 and 50-day Moving Averages (MA) reflected bullish momentum.

The recent dip almost tested the 50-day MA as support, and has begun to recover. However, the trading volume has been dwindling over the past two weeks.

A lack of buying pressure could induce a stupor and steady price declines.

It was unlikely that this would happen unless bitcoin faced a more severe correction and fell below $102.8k. WIF traders can use this dip to buy, with a stop-loss below the $0.76 level.

Source: WIF/USDT on TradingView

The 4-hour chart showed that the picture was not as rosy as on the 1-day chart. The reduced trading volume in recent days saw the A/D indicator trend downward toward the end of May. This was a characteristic of intense selling pressure.

dogwifhat was forced to fall below a three-week-old range (white) that extended from $0.93 to $1.21. At the time of writing, the MAs signaled that bearish momentum was dominant.

The price was testing the 50-period MA on the H4 chart.

If it can reclaim this MA, a MOVE toward the range high at $1.21 would become more likely. In this scenario, the low-demand zone would be a buying opportunity for swing traders.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion