In a recent post on the social media platform X, Galaxy Digital CEO Mike Novogratz teased his interest in Dogwifhat (WIF), a popular Solana meme coin. Moreover, the meme crypto community also showed renewed interest in Dogwifhat and the WIF price rallied over 5% thereafter. This uptick ended the recent downturn in the WIF price trajectory.

Dogwifhat Attracts Attention From Industry Stalwarts

Novogratz intriguingly queried, “Anyone know where I can buy one of the hats from the dog? Perfect gift for someone I know.” This seemingly casual question has stirred speculation within the crypto community about a potential interest in the Dogwifhat meme coin.

Galaxy Digital, known for its collaboration with Invesco in issuing the BTCO Bitcoin ETF, has not officially commented on any involvement with Dogwifhat. However, Novogratz’s post on X has led many to believe that the company might be considering the meme coin for its investment portfolio.

Adding to the buzz, tech entrepreneur Elon Musk made an offhand remark about Dogwifhat during a livestream earlier this week. In the video that received massive traction on X, Musk was heard saying that he “knows Dogwifhat.”

Moreover, Musk’s casual mention quickly caught the attention of his extensive follower base on X, significantly influencing the coin’s market dynamics. His previous endorsements of cryptocurrencies like Dogecoin have historically led to substantial market shifts. Hence, the recent comment fueled speculation that Dogwifhat could see similar trends.

Dogwifhat, featuring a Shiba Inu adorned with a distinctive knitted beanie, saw an impressive rise earlier this year. However, since late May, it had been caught in a descending price channel, reflecting a consistent downward trend. Market analysts have been closely monitoring the coin as it approaches a crucial support level, with its future teetering between potential recovery and further decline.

Despite the latest rebound, technical indicators highlight a troubling outlook for Dogwifhat. The descending channel, marked by progressively lower highs and lows, suggests ongoing selling pressure. Since the end of May, the coin’s value has dropped by 30%, currently trading lower than the critical resistance level of $2.44.

Also Read: Top 3 Meme Coins to Buy As Bitcoin Under $65k Sparks Fresh Correction

WIF Price Rebound To Continue?

Over the past week, it has lost 14% of its value. Hence, this support level is pivotal since if the bulls fail to hold it, the price could fall further, possibly hitting a new low of $1.93. Further expediting the bearish sentiment is the Aroon Down indicator, a tool used to measure the strength of a downtrend.

The Aroon Down Line for Dogwifhat stands at a worrisome 100%, indicating a strong downtrend with recent low prices. Moreover, this suggests that selling pressure remains dominant, overshadowing any buying interest. On the contrary, despite these bearish indicators, there remains a flicker of hope for Dogwifhat’s supporters.

If the current support level holds, a rebound towards the resistance level at $2.70 could be possible. This would offer a temporary respite and an opportunity for the coin to potentially break free from its descending channel. However, if the support level is breached, it could trigger a loss of investor confidence, leading to a sharp decline in value.

Current sentiment around Dogwifhat is mixed. While technical analysis leans bearish, there are optimistic forecasts as well. Some analysts predict a significant price increase, projecting a 225% rise to $7.87 by mid-July 2024.

The Fear & Greed Index, which gauges market sentiment, shows a high greed level at 74, indicating potential overvaluation. Over the past 30 days, Dogwifhat has experienced 30% green days and a price volatility of 11.82%, highlighting substantial price swings.

In addition, the recent endorsement by Galaxy CEO Mike Novogratz and Elon Musk could lead to a sustained rally owing to the optimism spread throughout the community. At press time, the WIF price surged by 5.09% to $2.35 on Saturday, June 15 with a market cap of $2.34 billion.

Also Read: 4 Meme Coin Losers of the Week

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