Dogwifhat is showing early signs of a potential bullish reversal after a prolonged correction phase.
Analysts highlight strengthening technical indicators and increasing buying interest around the key demand zone, suggesting the meme-inspired token could soon retest the $0.50 resistance level.
Bullish Divergence Near Key Demand Zone
In a recent X post, analyst Osemka highlighted a developing bullish divergence on Dogwifhat’s daily chart, signaling that bearish momentum is weakening. The analyst pointed out that while the coin’s price has continued to form lower lows, the Relative Strength Index (RSI) has printed higher lows, a pattern often seen before an upward reversal.
Source: X
Osemka emphasized that the token currently trades within a crucial demand area, a region historically known for attracting accumulation and subsequent rebounds. The combination of rising RSI and demand zone positioning suggests that buyers could soon regain control, potentially pushing prices higher in the near term.
Market Metrics Show Potential for Recovery
According to BraveNewCoin data, Dogwifhat trades at 0.46 USDT, marking a 7.56% daily decline and a market capitalization of 459.89 million USDT.
Its 24-hour trading volume stands at approximately 131.09 million USDT, reflecting strong market activity despite the recent dip.
Source: BraveNewCoin
With a circulating supply of 998.9 million tokens, the token continues to maintain a steady presence within the meme coin sector. The data shows that the coin has fluctuated between 0.45 USDT and 0.48 USDT over the past day, indicating a period of short-term consolidation. Market watchers note that such compression phases often precede stronger directional moves once volatility resumes.
Technical Indicators Suggest Imminent Breakout Formation
At the time of writing, Dogwifhat trades at 0.480 USDT on Binance, up 4.35% in the past session. The Bollinger Bands indicate price movement near the baseline at 0.497 USDT, with the upper band positioned around 0.591 USDT and the lower at 0.404 USDT. This structure shows that the coin is consolidating within a narrowing range, often a precursor to a breakout.
Source: TradingView
The RSI currently stands at 44.93, with an RSI-based moving average of 40.55, indicating neutral momentum and mild bullish divergence. Analysts note that if the token breaks above the diagonal resistance identified by Osemka, it could confirm the “first signs of strength” and pave the way for reclaiming the 0.60 USDT mark in the short term.