Meme coins have been sliding in recent weeks. According to Coingecko, the total market capitalization of all meme coins is approximately $42 billion.
Dogecoin remains the most valuable, with a market cap of over $15.4 billion, followed by Shiba Inu, which has a market cap of around $8 billion. It’s been a turbulent few months of trading for meme coins, whose valuation has fallen from over $65 billion in the second quarter of 204.
WIF struggles, is this the “most bearish meme coin”?
While Bitcoin is turning the corner, a development that could push top altcoins like Solana and meme coins higher, one analyst is bearish on DogWifHat (WIF). According to CoingeckoWIF is one of the top meme coins on Solana, with a market cap of over $1.5 billion and a top 5 ranking.
While WIF may be up over 98,000% after falling to a low of $0.00155 in December 2023, the token is down 68% from recent record highs. WIF prices exploded due to Solana’s expansion and the meme coin fever that swept the sector in the first half of the year.
The analyst now thinks that WIF is likely to dump in the coming sessions. The driving force behind this outlook is the state of the chart pattern, which thoroughly points to weakness. From how the WIFUSDT chart is aligned, the token, the analyst claimscould be the “most bearish of all the major meme coins.”
Bulls Have a Chance as Bitcoin Recovers, DogWifHat Finds Resistance at $2
While there is optimism that WIF could bounce back and benefit from the market-wide recovery, the current bearish structure tempers optimism. According to the analyst’s assessment, buying the meme coin at bargain prices is risky. The only time traders may consider loading WIF is once it breaks out of the falling wedge, as shown in the daily chart.
In summary, WIF is down almost 50% from July highs. Although prices recovered after the rebound in early August, buyers did not build enough momentum to reverse losses. Immediate resistance is at $1.99, while support is at $1.30.
To shape the uptrend, WIF bulls need to break above $2, ideally with rising trading volume. This in turn could create the momentum for another move higher, which could see the token expand to a high of $3, or a July high in a bull bar continuation formation.
