dogwifhat: What should traders do to take advantage of the 24% fall of WIF?

dogwifhat (WIF) has started to recover after the recent fall that caused the price to drop from $1.12 to $0.85. This 24% decline occurred over two days, as Bitcoin (BTC) slid from $108,000 to $104,000 at the end of May.

In the past 24 hours, BTC has risen 2.5% from $103,800 to $106,500. This has driven the crypto market to recover some recent losses. At this moment, data from CoinMarketCap shows that the memecoin sector has increased by 3.1% in the past 24 hours.

This is a good start for WIF. Long-term buyers will be interested in the project and it still fits within the bullish market structure.

The fall momentum is forming on lower time frames, but traders can look for Long positions.

The fall of WIF brings opportunities for buyers to participate

! Source: TradingViewThe 1-day chart shows the short-term bullish structure. It formed a range in March and April and is still above the $0.77 peak now. The 20- and 50-day (MA) moving averages reflect the upward momentum.

The fall has almost tested the 50-day MA line as a support level and started to recover. However, trading volume has gradually decreased over the past two weeks.

The lack of buying pressure can lead to paralysis and prices are likely to fall steadily.

However, this is unlikely to happen unless Bitcoin faces a more severe correction and falls below $102,800. WIF traders may take advantage of this drop to buy in, with a stop loss below $0.76.

! Source: TradingViewThe 4-hour chart shows that the picture is not as bright as on the 1-day chart. Trading volume has decreased in recent days, causing the A/D indicator to tend to decline at the end of May. This is characteristic of strong selling pressure.

dogwifhat has fallen below the three-week range (white) extending from $0.93 to $1.21. At this time, MA indicates that the downward momentum is prevailing.

The price is testing the 50-period MA on the 4-hour chart.

If this MA can be reclaimed, WIF has the potential to move back to the peak of the range at $1.21. In this scenario, the low demand zone will be a buying opportunity for traders participating in the swing.

Vincent