Dogwifhat (WIF) Faces 2.4% Pullback Amid Mixed Market Signals

Dogwifhat (WIF) has shown a mixed outlook in recent weeks, with bullish signals on higher timeframes contrasting with bearish pressure on lower timeframes. The weekly chart for WIF indicates a bullish structure break in early May, when the price surpassed the $0.76 level, leaving a fair value gap (FVG) between $0.7 and $0.8. This FVG has acted as a crucial demand zone, preventing prices from dropping further despite resistance at $1.2-$1.3 over the past three weeks.

The On-Balance Volume (OBV) indicator suggests steady buying pressure behind WIF on the weekly chart. However, the picture changes on lower timeframes, particularly the 12-hour chart. WIF's momentum from last week has waned in recent days, with a 2.4% pullback in the past 24 hours following Bitcoin's rejection at $110k. This price drop has affected WIF and the broader cryptocurrency market.

On the 12-hour chart, WIF achieved a bullish structure break by moving above the $0.987 level, which was the previous high. However, the inability to maintain prices above the $0.98-$1 supply zone has been discouraging. The OBV has been in a slow downtrend for three weeks, signaling steady selling pressure. The Fixed Range Volume Profile marks the psychological $1 level as the Value Area High, a level that WIF bulls have been unable to flip to support.

Given the descending OBV and recent lukewarm momentum, it is likely that WIF will drop toward $0.8 next. Investors are advised to remain patient, as a breakout past $1 and $1.2 could still materialize. The higher timeframe price action of WIF remains bullish, but seller dominance over the past three weeks has cast doubts on the memecoin’s bullish conviction. The current price action presents a buying opportunity for investors willing to wait for a potential breakout.