Dogwifhat Sparks Memecoin Comeback — Will WIF Keep Wagging Higher?
What's Next for WIF? | Credit: Hameem Sarwar
Key Takeaways
- Dogwifthat (WIF) has been the biggest memecoin gainers since Aug. 5.
- The WIF price trades near the end of a descending wedge pattern.
- Will WIF sustain its upward movement and break out this month?
Memecoins have been the subject of a noticeable revival since their Aug. 5 lows.
At the forefront of this memecoin frenzy is Dogwifhat, which has surged over 40% in a stunning comeback.
However, despite this impressive rebound, WIF remains tethered to a long-standing resistance trend line, casting a shadow of uncertainty over its future prospects.
The question on every investor’s mind is: Can WIF sustain its momentum and finally shatter the resistance that has held it back for so long?
Who is Leading the Memecoin Charge?
Since the Aug. 5 low, Dogwifhat (WIF) has been the top dog among the six largest memecoins, fetching an impressive 42.65% gain (green).
Floki Inu (FLOKI) is hot on its heels in second place, followed by Pepe Coin (PEPE), Shiba Inu (SHIB), and Dogecoin (DOGE), with each of these assets positively posting gains between 25% and 30%.
Bonk (BONK) has been lagging behind at the other end of the pack, barely scratching out a 16.67% increase (black). It’s worth noting that the top and bottom performers are both built on the Solana blockchain, while those based on Ethereum are stuck in the middle of the pack.
At the beginning of the year, BONK led the rally, while WIF followed. The roles seemed to have reversed in the current recovery.
In the case of Ethereum memecoins, PEPE led the rally, while FLOKI followed. This has also been the opposite of the previous rally, though the difference is much minor than the Solana memecoins.
WIF Reclaims Support
The daily chart shows that WIF has decreased under a descending resistance trend line since April. The decline led to a low of $1.07 on Aug. 5, causing a breakdown from the $1.55 horizontal area.
After regaining its footing, WIF created a higher low and reclaimed the support area. This would mean the breakdown was just a deviation, likely leading to a bullish future outlook.
However, even if WIF’s price reclaims the support area, the long-term descending resistance trend line will be at $2. The trend cannot be considered bullish until the price breaks out.
The daily RSI and MACD do not confirm the reversal yet. Even though both are increasing, the RSI is under 50, and the MACD is negative.
WIF Price Prediction
The long-term WIF wave count shows a completed five-wave increase between January and March 2024.
What has followed is a decrease inside a descending wedge. Even though the wedge is a bullish pattern, often leading to a breakout, its creation does not bode well for the future WIF trend.
This is because the movement inside the wedge is a five-wave structure. So, it is either a bearish wave one or wave A in an A-B-C corrective structure. Nevertheless, both scenarios would lead to a short-term breakout, which is either wave 2 or wave B.
If this happens, WIF will likely target the 0.5-0.618 Fibonacci retracement resistance level at $3-$3.45 for the top of the B wave. Then, another decline could follow.
As a result, while the long-term trend is unclear, WIF is expected to break out from its wedge and begin a short-term relief rally.
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