The price of Dogwifhat (WIF) is drawing attention from traders after slipping below a key support zone near $0.18. While the drop may initially appear bearish, technical indicators suggest the meme coin could be approaching a potential turning point.
Currently, WIF is trading under the $0.18 range support, a level that previously acted as the lower boundary of its broader trading range. The market has been hovering below this point since the low formed on February 6, indicating that the price temporarily moved outside its earlier range. In many cases, breaking below a major support level can trigger additional selling pressure. However, the current setup is hinting at a possible deviation — a move where the price briefly drops below support before returning to the range.
$0.18 Level Remains Critical
For traders watching the chart, $0.18 has become the most important level to monitor. If WIF manages to climb back above this price and hold it as support, it could signal that the recent breakdown was only temporary. Such a recovery would bring the asset back into its previous trading range and potentially open the door for further upside.
Should this scenario play out, analysts see the next major resistance near $0.26. This level marks the upper boundary of the same range that WIF has been trading in for an extended period.
RSI Points to Weakening Selling Pressure
One of the key signals supporting the bullish outlook comes from the Relative Strength Index (RSI), a commonly used momentum indicator in technical analysis. Despite WIF continuing to print lower lows in price, the RSI has been forming higher lows.
This pattern, known as a bullish divergence, often suggests that selling pressure is fading. It typically appears during the later stages of a downtrend, when momentum begins to shift even though prices are still declining. In some cases, this setup can lead to a reversal or at least a short-term relief rally.
Broader Market Still Under Pressure
While the divergence offers a potential bullish hint, the broader crypto market environment remains uncertain. Major cryptocurrencies like Bitcoin are still trading well below their all-time highs after experiencing double-digit declines. This wider market weakness means WIF still faces external pressure despite its improving technical signals.
What Traders Should Watch Next
The next move for WIF largely depends on whether the price can reclaim the $0.18 level. A successful recovery above this support could shift market structure back into the previous range and increase the chances of a move toward $0.26.
On the other hand, if WIF continues to face rejection below $0.18, the bearish trend could remain in place, potentially leading to further downside exploration.
For now, the meme coin sits at a critical technical crossroads. Traders will likely keep a close eye on price action, volume, and momentum indicators to determine whether a local bottom is forming or if the downtrend still has more room to run.
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