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Crypto prices continue to face significant selling pressure, with the weak US job reports released today adding to the volatility.
Dogwifhat is again amongst the worst performers on Friday and is now down over 25% over the past week.
However, the Relative Strength Index for WIF is now flashing a “Buy” signal in the 4-hour timeframe, indicating that the top Solana meme coin may now be oversold.
Despite the weakness in large-cap altcoins, low-cap tokens remain in high demand. For instance, Base Dawgz – a multi-chain meme coin – has raised $2.8 million in seed funding, indicating high upside potential after its launch.
Dogwifhat RSI Flashes Buy Signal – Is WIF Oversold?
Technical analysis platform TradingView reveals that Dogwifhat’s RSI currently stands at 29.28 in the 4-hour time frame, firmly in the oversold territory. The Momentum (10) and Williams Percentage Range (14) oscillator indicators are also in the green.
However, it doesn’t appear that the meme coin is out of the woods just yet.
Popular crypto trader Bluntz (@Bluntz_Capital) – who recently accurately predicted the local top and bottom for WIF – now believes that the Dogwifhat price could correct to $1 in the coming weeks.
it was a nice move, however not looking like an impulse rise from the lows on $wif, just looks like a big abc up, hat has to come off again unfortunately sorry wif gang will try again later pic.twitter.com/LzoKaxFuUN
— Bluntz (@Bluntz_Capital) August 1, 2024
Considering that WIF is trading at $1.90 at press time, this could mean that another 47% decline is a possibility for the token.
Bluntz is also not the only analyst bearish on WIF. MacroCRG (@MacroCRG) – a trader with over 140k followers on X – highlights that the Dogwifhat price chart is painting a grim picture for the token.
WIF is now trading below several crucial supports and Fibonacci levels. A failure to reclaim these levels before the upcoming weekly close could lock in another downside move for it.
The bulls also need to reclaim the $2.10 to $2.40 range, which currently has several key moving average indicators, including the 100 EMA, 100 SMA and 200 EMA in the 4-hour timeframe. A recovery of these levels would likely invalidate all bearish scenarios.
However, a failure to do so would mean that the Dogwifhat price will likely visit $1 in the coming days, despite the oversold RSI.
Is Base Dawgz The Best Meme Coin To Buy Now?
Considering the uncertain broader market sentiment, new meme coins could be the best crypto investments in the short term. Smart money investors have already adopted this strategy.
For instance, popular crypto trader Connor Kenny – who has 130k subscribers on YouTube – has invested in Base Dawgz, calling it one of the best meme coins to buy now.
He is also not the only one. The DAWGZ presale has already raised over $2.8 million in a few short weeks, a good sign for its post-launch price potential.
Base Dawgz is a high-utility meme coin, drawing comparisons with popular tokens such as Floki. For instance, it has launched a share-to-earn program, allowing investors to earn airdrop points for sharing project-related content on their social media.
Alternatively, they can create their referral link and earn a percentage of all investments made through the link.
Similar to Floki, Base Dawgz is also a multi-chain meme coin, which will go live on Base, Ethereum, Solana, Avalanche and BNB Smart Chain. In a rare move, it also offers high staking rewards on all the chains. For instance, the reward rate is currently over 970% for early presale buyers.
Considering that Base meme coins are highly undervalued, experts believe that DAWGZ could be the next big project on the chain, following in the footsteps of Brett.
