Dogwifhat (WIF) has experienced a significant 42% increase over the past month, raising hopes of reaching $3. However, sustaining this growth is uncertain due to weakening indicators like the RSI, which has dropped to 45.34 from 74, suggesting diminished buying pressure.
The RSI drop indicates potential trend reversal, as fewer investors are entering the market. RSI measures momentum, with values above 70 indicating overbought conditions and below 30, oversold conditions. Currently, WIF approaches neutral territory, indicating a possible market consolidation phase.
Despite an uptrend, there's a risk of losing momentum as the RSI declines. The ADX further indicates weakened trend strength, dropping to 18.73 from 53. This decline shows loss of market participant confidence, potentially leading to volatility and lack of clear direction.
The EMA lines hint at potential correction, with short-term EMAs declining since yesterday. If a reversal occurs, WIF might test the $1.62 support level before seeking resistance at $2.63 and $2.8. A breakthrough could push it back to $3, a level not seen since June 2024.
