The Dogwifhat price plunged 8% over the past 24 hours to trade at $1.77 at press time.

This recent correction is a continuation of the meme coin’s negative monthly and weekly performance. As a result, the WIF price is down more than 19% over the past 7 days and is in the red by more than 46% over the past 30 days. 

The Dogwifhat Price Testing Key Support

The Dogwifhat price plunged below the key support level at $2.188 in the past 48 hours. Now, the meme coin is testing the next crucial price point at $1.6695. Should it drop below this technical safety net in the next 8 hours, it could be at risk of plunging to as low as $1.3610 in the short term.

Also read: Is a Bullish Reversal Ahead for the Worldcoin Price?

On the other hand, WIF maintaining a position above the $1.6695 support for the next 12 hours could invalidate the bearish thesis. In this alternative scenario, the crypto could start to climb back towards the aforementioned $2.188 mark.

A 4-hour candle close above this barrier could then give the Dogwifhat price the foundation needed to potentially climb to the major resistance level at $2.6290.

Technicals Show Decreasing Bearish Pressure

Technical indicators on WIF’s 4-hour chart are flagging bearish, but do suggest that the meme coin’s negative cycle has reached a peak and might soon come to an end. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators show that sellers are overpowering buyers.

Also read: AVAX Crypto Crash Alert: Will It Hold $25 or Plunge Further?

The MACD line is positioned below the MACD Signal line. Traders generally see this as an indication that a crypto is in a bearish cycle. Meanwhile, the RSI is also positioned below its Simple Moving Average (SMA) line, which suggests the presence of bearish strength.

Traders and investors will want to keep an eye on these indicators. Firstly, the gap between the MACD and MACD Signal line is starting to shrink. This could be an early sign of an upcoming bullish trend reversal. The 4-hour RSI also indicates that the Dogwifhat price is currently oversold. Buyers might see this as an opportunity to purchase the meme coin at a discount.

The leveling off of the RSI line and the narrowing gap between the MACD and MACD Signal line all suggest WIF’s bearish momentum is cooling off.

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