Key Points
- Despite the market dump, the memecoin dogwifhat (WIF) maintained its bullish market structure.
- Bitcoin (BTC) held its value better than WIF, despite its bearish market structure.
Crypto-assets have seen significant losses as April’s downturn continues into May. This negative trend is amplified by the fact that Bitcoin (BTC) broke its two-month price range of $60.8k and $72.7k.
The drop in BTC’s value added further pressure on altcoins, with some losing up to 40% of their value. Despite this, some coins managed to maintain their bullish market structures.
WIF Defies Market Trends
Crypto-analyst Ansem identified memecoin dogwifhat (WIF) as a coin that managed to hold its bullish market structure during the market slump. Market structure refers to a token’s price action on the charts, which can be either bullish or bearish.
Despite intensified selling pressure, WIF has stayed above the $2-level since March. Its price action remains above key support and moving averages, indicating an overall uptrend and a bullish market structure.
Bitcoin’s Bearish Market Structure
In contrast, BTC’s price fell below its two-month support of around $60k and one of the moving averages. According to technical analysis, this suggests that BTC has broken its market structure and turned bearish.
However, when comparing the drop in value from their respective all-time highs, WIF lost twice as much as BTC. WIF hit a record high of $4.86 but was trading at $2.75 at the time of writing, a drop of 44%. Meanwhile, BTC was down about 20% from its record high of $73.7k.
Despite this, WIF’s bullish market structure suggests that it could recover faster than BTC when the market conditions improve.
