NOIDA (CoinChapter.com) — Solana-based memecoin Dogwifhat’s price reached a new record high near $4.85 on the last day of March. Then, as is usually the case, profit booking from the bears resulted in the memecoin paring gains.
As a result, the token’s April has been bearish so far, with Dogwifhat sellers pranking bulls on April Fool’s Day to pare nearly 20% of WIF’s gains. The trend continued on April 2, forcing the WIF price to plunge 13% and reach a daily low near $3.67 before making a marginal recovery.
WIF Price Copies Wider Market Trend
The decline in Dogwifhat prices had nothing to do with the memecoin itself since the project has no intrinsic use cases and, thus, any value-boosting features. The cryptocurrency token was reacting to the wider market bearishness, led by Bitcoin’s nearly 10% decline in April so far.
Over the past 24 hours, the wider crypto market saw a massive outflow of gains, as nearly every major crypto token in the top 20 list faced losses.
On April 1, Bitcoin prices fell by 2.30%, canceling a 2.38% rise from the day before, closing the day near $69,700. The drop likely reacted to the latest US manufacturing data for March, which showed the ISM Manufacturing PMI jumping from 47.8 to 50.3.
The spike signaled growth in the sector and potential inflation increases. As a result, the news created a FUD regarding the Federal Reserve not cutting interest rates in June. This forced crypto assets to pare gains since higher interest rates often discourage investors from riskier assets like Bitcoin.
Moreover, 10-year US Treasury yields climbed by 2.54%, further influencing traders to withdraw from Bitcoin, which briefly dipped near $65,800 on April 2. The wider crypto market and Dogwifhat aped Bitcoin’s negative price action, resulting in WIF price shedding gains.
However, WIF supporters shrugged off Bitcoin’s downtrend as pre-halving volatility, with posts shilling the Dogwifhat token flooding social media platforms.
Yet, the hopium could only take the WIF price so far since memecoin traders are usually the first to dump their holdings and scamper once the market declines. As such, WIF loyalists might be in for a rude awakening if they continue to hodl.
Dogwifhat Price Downtrend Continues
The Dogwifhat token price continued to drop as trading progressed on April 2, which could result in WIF price testing the 20-day EMA (red wave) support near $3.06.
Breaking below the immediate support could confirm the memecoin’s downtrend, resulting in increased selling pressure and a drop to the 0.236 FIB support near $2.
However, a rebound from the 20-day EMA dynamic support could help the WIF price rally to the resistance near $4.76, a hair away from Dogwifhat’s recent ATH. Flipping the immediate resistance might help the memecoin price rally to a new ATH near $6 before bears return for the hunt.
The relative strength index, or RSI, for WIF, remained neutral, with a score of 59.78 on the daily charts.
