Dogwifhat (WIF) Price Spikes 30% After Las Vegas News — Signs of a Market Reversal Emerge

Key Takeaways

• Dogwifhat (WIF) has created a long-term double-top pattern.
• The price fell below the long-term horizontal support of $1.50.
• Can WIF reclaim this support level, or will it fall to new lows?

Dogwifhat (WIF) has been one of the leading memecoin gainers in the current cycle, quickly rising through the ranks and becoming the largest memecoin in the Solana blockchain.

However, its performance has left much to be desired since December, during which WIF lost 70% of its value.

This week, WIF fell below $1 for the first time since the bull run started.

The decrease was short-lived since the price increased by 40% shortly afterward, catalyzed by a Las Vegas promotion announcement by the Dogwifhat team.

The bounce has reignited bullish sentiment, raising speculation that the WIF price correction is finally over. Let’s look at the charts and see if this is the case.

WIF Falls Below Support

The WIF price reached its all-time high of $4.86 in March 2024. The price fell almost immediately afterward, triggering a correction lasting for several months. The ensuing upward movement to end the year almost led to a new all-time high. However, WIF topped at $4.85, creating a double top pattern (black icons) with a long upper wick in the second top. This was the local high, after which WIF fell by 80%.

This week, WIF fell to a low of $0.97, the first time the price traded below $1 since February 2024. More importantly, the decrease also caused a breakdown from the $1.50 horizontal support area, supporting the price for the upward movement.

Unless the WIF price reclaims it, it could fall to its all-time low region of $0.25 since no other support is below it.

Technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both falling.

The RSI has crossed below 50 while the MACD turned negative, both signs of a bearish trend.

As a result, the weekly time frame price action and indicator readings are both bearish, suggesting that new lows are incoming.

Dogwifhat Las Vegas Announcement

Dogwifhat returned to the spotlight after the team announced  it would promote it in the Las Vegas Sphere, though they did not specify a date. The announcement preceded the price increase since many people allegedly saw the tweet. 

Despite the bounce, technical analysts have a mixed view of the future trend. Bluntz Capital believes a long-term A-B-C correction that started at an all-time high has finally ended. He predicts that a new upward movement will begin soon.

However, Phoenix is not as confident , since he believes losing the $1.30 level will plunge the memecoin to new depths. Let’s look at the wave count and determine what is more likely.

WIF Correction Over?

The wave count suggests that the correction is over. Since its all-time high, the WIF price has completed an A-B-C corrective structure (white). Waves A:C had an exactly 1:1 ratio, which is common in such structures.

Wave A developed into a leading diagonal. Also, the bottom of wave C barely swept that of wave A before leading to a bounce. Therefore, Elliott Wave rules suggest the correction is over.

Nevertheless, it is unclear whether the following movement will be a new five-wave increase or a relief, corrective rally. In any case, a WIF increase toward the 0.618 Fibonacci retracement resistance level at $3.32 will be likely.

This bullish WIF prediction is contingent on the price reclaiming the $1.50 horizontal level and confirming it as support.

If WIF fails to reclaim this level, it could instead deepen its correction toward the next closest support at $0.40. This would invalidate the count and indicate that new lows are in store.

WIF Needs to Reclaim Support

The Dogwifhat coin showed its first signs of a potential trend reversal by bouncing once it swept the lows of August.

To confirm its correction is complete, the WIF price must reach a long-term close above $1.50. If that happens, WIF can move to at least the next Fibonacci resistance at $3.37 and possibly increase to new highs.