Dogwifhat signals possible pullback after 23% surge

Dogwifhat (WIF) has surged 23.23% in the past 24 hours, reaching a price of $0.7592.

This follows a sharp decline since November 2024, when it touched a low of around $0.54.

Today’s rapid climb reflects strong buying interest, pushing the memecoin’s trading volume up 240.84% to $919.43 million, outpacing its market cap by over 111%.

While such momentum suggests heightened trader attention, it also raises questions about sustainability.

Overbought RSI despite broadening formation breakout

Technical indicators tell a mixed story behind this rally. Since February 24, 2025, the WIF price has been forming a broadening formation on the 4-hour chart, marked by diverging trendlines of higher highs and lower lows.

This pattern reflects growing volatility and investor disagreement over its value.

WIF has today broken above the upper trendline, hitting a 24-hour high of $0.7877, a move analysts link to a bullish divergence on the Relative Strength Index (RSI).

However, caution is creeping into the outlook. The RSI on the 4-hour chart has entered overbought territory, typically above 70, signaling intense buying pressure.

Such conditions often precede a pullback as traders take profits or momentum fades.

Dogwifhat price chart by TradingView

Despite the breakout suggesting an 80% reversal potential, as earlier predicted by analyst Crypto Jobs, the overbought state hints at a short-term correction looming.

The broader market dynamics add another layer of complexity. Bitcoin (BTC), a key driver of crypto trends, recently dipped below $80,000, briefly losing support. Its struggle to reclaim its previous highs still holds a sway on altcoins like WIF, which saw similar drops as BTC plunged.

If Bitcoin falters, WIF’s rally might face additional headwinds, amplifying the pullback risk.

At press time, Dogwifhat’s 1-year performance was down 54.6%, with a 33% drop over the past 30 days, making today’s surge, while impressive, to sit within a pattern of sharp oscillations rather than steady growth.

Key WIF price levels to watch

Traders now face a pivotal moment. The breakout from the broadening formation signals bullish intent, potentially targeting the resistance at $0.841, which, if breached, could see the memecoin attempt the $1 resistance level.

Conversely, with the overbought RSI suggesting a possible retreat, the memecoin could test the support near $0.6269, which currently doubles up as the 24-hour low.

If this support level fails, the memecoin could see a drop to around $0.562, which, if breached, could mean a tougher bearish trend.

Notably, while the current state of uncertainty lingers, the market swings could offer swing traders opportunities, though timing remains critical.

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