Big News for the Dogwifhat meme coin today, whose price jumped 17% in the last 24 hours, outperforming the top 100 cryptocurrencies.
After a weeklong losing streak, Dogwifhat’s price flipped positive on Wednesday, Jan. 29, and rallied from $0.99 to $1.35, according to data from CoinMarketCap.
The sudden uptrending price action, after months of progressive losses, raised questions about the core drivers of this price action.
Top among the factors believed to have played a key role in WIF’s positive price action was the X post, teasing a possible promotion of the dog-themed coin on the Vegas Sphere.
WIF post on XThe post riled up bullish momentum within the meme coin’s community as it feeds into social media engagement and hype, two key price drivers of any joke currency.
WIF also benefited from a rebounding crypto market after a rocky start of the week, affected by concerns about a low-cost AI model from DeepSeek and profit booking ahead of the FOMC policy meeting. This was evidenced by the 330% surge in trading volume to break above $1.26 Billion.
Technical analysis indicates WIF has Found a Bottom Around $1
The rally comes barely a day after WIF tested the psychological $1 support level.
From a technical perspective, Dogwifhat has hit the bottom of a three-month descending channel down pattern hinting at a bullish momentum. The Moving Average Convergence Divergence (MACD) indicator has also been converging. A break above the zero line would signal a shift in momentum from the current bear trend toward a bullish crossover.
WIF’s RSI indicator has also bounced back from the oversold region and currently hovers around 35. This signals the ease of selling pressure and a possible recovery that creates room for the incubation of bullish sentiments.
If the bulls can defend the current support level at around $1 and the current push towards $1.3, forecasters are confident the meme coin’s price can run towards $2 before the end of the week.
On the flip side, if bulls fail to defend this critical support level, this bullish trend will be negated with bears pulling the blue-chip meme’s price towards $0.98.
