WIF Memecoin Drops 24% Amid Bitcoin Price Correction

WIF, a popular memecoin, experienced a significant price correction in late May, with its value dropping by 24% from $1.12 to $0.85 over two days. This decline was concurrent with a similar drop in Bitcoin's price, which fell from $108k to $104k during the same period. Despite this setback, WIF has shown signs of recovery, with its price rebounding to the $0.9 zone, which now serves as a support level. This price movement has created an opportunity for traders to enter long positions, as the overall market structure for WIF remains bullish.

The 1-day chart for WIF/USDT indicates a bullish swing structure, with the memecoin forming a range in March and April and remaining above the highs at $0.77. The 20 and 50-day Moving Averages (MA) also reflect bullish momentum, suggesting that the recent dip could be a buying opportunity for traders. However, the lack of buying volume over the past two weeks could induce a period of stagnation and steady price declines if Bitcoin faces a more severe correction and falls below $102.8k. Traders can use this dip to buy, with a stop-loss below the $0.76 level.

The 4-hour chart presents a less optimistic picture, with reduced trading volume in recent days causing the A/D indicator to trend downward. This downward trend is a characteristic of intense selling pressure, and WIF has fallen below a three-week-old range that extended from $0.93 to $1.21. The MAs on the 4-hour chart signal that bearish momentum is currently dominant, with the price testing the 50-period MA. If WIF can reclaim this MA, a move toward the range high at $1.21 would become more likely, presenting a buying opportunity for swing traders.

The recent rally in the memecoin sector, which saw a 3.1% increase over the past 24 hours, has provided a good start for WIF. Long-term buyers would be interested in the popular memecoin, and its market structure remained bullish. However, the absence of buying volume might give swing traders pause, as it could induce a period of stagnation and steady price declines. Traders should monitor Bitcoin's price movements closely, as a more severe correction could impact WIF's price.