Dogwifhat (WIF) at Make-or-Break Support: Altcoin Sherpa Sounds Alarm on Potential 40% Drop

Memecoin mania faces its first real test as WIF wobbles near critical support. Here's what comes next.

## The $2.20 Line in the Sand

Dogwifhat's 200-day moving average has held through three retests since May - but the fourth touch could spell trouble. Liquidity pools show thin buy orders below this level.

## Whales Playing Chicken

On-chain data reveals two competing narratives: 1) A 12,000 ETH buy wall at $2.15 from known market makers, versus 2) OTC desks reporting hedge funds quietly accumulating put options.

## The Broader Meme Landscape

While PEPE and BONK show relative strength, WIF's 24hr funding rate just turned negative for the first time in June. Derivative traders appear to be losing faith.

Remember kids: In crypto, 'support' is just resistance that hasn't broken yet - until some VC's algo decides it's harvest time.

$0.17098 competitor, dogwifhat (WIF), highlighting a substantial risk of decline. In Sherpa’s view, if WIF fails to maintain the $0.78 level, it might signal the beginning of a prolonged downtrend.

ContentsDogwifhat (WIF) AlertExpectations for Bitcoin’s PriceHyperliquid and Market Outlook

Dogwifhat (WIF) Alert

Altcoin Sherpa has underscored the importance of holding the $0.78 level for WIF, pointing out that a breakdown below this threshold could result in a negative market structure in the short term. As of the time of writing, WIF is trading at $0.7791, with its price experiencing a sideways trajectory throughout the day.

Altcoin Sherpa: “Failure to hold this level could spell trouble for many altcoins, as there is noticeable selling pressure in the short term in several coins.”

Expectations for Bitcoin’s Price

Sherpa has also shared his insights on Bitcoin$104,744, suggesting that the leading cryptocurrency is gearing up for a new peak. Shared charts indicate Bitcoin’s potential to reach a record high of $124,000. Despite a general market lull, Sherpa maintains that Bitcoin remains robust in the long term.

Altcoin Sherpa: “Despite challenges like war and the lack of interest rate cuts, BTC holds above $100,000, showing positive signs.”

Sherpa notes Bitcoin’s strength in the face of current macroeconomic challenges but warns that sudden negative news could lead to sharp corrections in pricing. He advises diversification of risk and cautious positioning.

Altcoin Sherpa: “I’m avoiding entering too many positions right now. Although some of my holdings are underperforming, I’m not worried. BTC is in uncertain territory, and unfavorable news could quickly depress the price. I prefer to use this period for resting and research.”

Hyperliquid and Market Outlook

Another focus of the analyst is Hyperliquid (HYPE). Sherpa speculates that HYPE might not have reached rock bottom yet, predicting that fluctuations in Bitcoin’s price could prompt HYPE to test the Fibonacci level at $31.84.

Altcoin Sherpa: “HYPE is slightly retracting. If Bitcoin’s decline continues, the price might fall to the low $30s. Nonetheless, I believe it is one of the best coins in this cycle, and I continue to hold my assets for now.”

While the cryptocurrency markets exhibit high volatility, especially in the short term, analysts’ insights into support and resistance levels present important markers for investors to observe. It’s crucial for investors to heed analysts’ warnings, practice vigilant risk management, and keep trading decisions flexible relative to market conditions. Sudden and sharp movements can be observed in altcoins, hence staying abreast of current market developments is recommended.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.