Dogwifhat Price Drops to $0.75 Support Amid Hidden Bullish Divergence: Is the Bottom in Sight?

Dogwifhat’s price is currently testing a vital high-timeframe support level at $0.75, bolstered by a confluence of Fibonacci and value area metrics. A hidden bullish divergence hints at the potential for a bullish reversal.

Dogwifhat’s (WIF) price action has reverted to a key support zone after an unsuccessful attempt to reclaim the point of control (POC). This crucial level, anchored at $0.75, aligns with the value area low and the 0.618 Fibonacci retracement, serving as a pivotal point in the market structure.

In addition, WIFStrategy has acquired 500,000 WIF tokens, which bolsters the optimistic outlook as the asset gears up for potential gains. Successfully defending this level could preserve the bullish trend that has characterized WIF’s larger upward movement and avert deeper retracements that might destabilize the bullish pattern.

Key Technical Points for Dogwifhat Price

• $0.75 High-Timeframe Support: A critical level aligning with the value area low and 0.618 Fibonacci retracement.
• Failed POC Reclaim: Price rejection at the POC has redirected the momentum downward, necessitating a retest of crucial support.
• Hidden Bullish Divergence: The price is forming higher lows while RSI is showing lower lows, suggesting a potential bottoming pattern.

The rejection from the POC has created a significant test at $0.75. This zone has repeatedly served as a pivot in earlier cycles, and its overlap with both the Fibonacci retracement and the value area low amplifies its technical significance. If buyers can defend this region, WIF is likely to print another higher low within its broader upward trajectory, maintaining the sequence of higher highs and higher lows. This would reinforce the notion that the price is merely consolidating before the next leg upward.

However, a failure at this level would undermine the bullish argument. Falling below $0.75 would place Dogwifhat in a more precarious situation, exposing liquidity gaps and lower support areas. Therefore, the next few trading sessions around this level are pivotal in determining WIF’s short-term direction.

One of the most significant factors supporting a bullish case is the rise of a hidden bullish divergence. On the price chart, WIF has been creating higher lows, while the RSI indicator has been posting lower lows concurrently. This discrepancy is often interpreted as a strong continuation signal, indicating that buyers might be absorbing selling pressure and planning for a renewed upward push.

Nonetheless, divergences require confirmation, which in this instance means increased volume inflows. Without a notable surge in buying activity to validate the divergence, the signal risks losing its potency. If bullish volume returns, however, it could catalyze WIF’s breakout from its consolidation phase and lead to a retest of higher ranges.

What to Anticipate in Upcoming Price Action

As long as $0.75 holds, Dogwifhat is well-positioned to establish a higher low and potentially rotate back toward the $1.40 resistance level. The bullish divergence on the RSI further supports this outlook, provided that volume inflows validate the move.

A successful defense of this support would enhance the broader bullish market structure, while a failure could shift sentiment towards bearish and invalidate the current setup.