Dogwifhat (WIF) Could See 100% Price Increase – Here’s What Wave Analysis Shows
Is the WIF Correction Over? | Credit: Hameem Sarwar
Key Takeaways
- Dogwifhat (WIF) likely completed its correction on Aug. 5.
- A breakout from the descending wedge pattern will confirm this.
- Will WIF break out, or will it suffer a rejection instead?
Dogwifhat has been the best-performing meme coin since Aug. 5, potentially sparking a revival for the category that led through most of 2024. Since then, the meme coin has created consecutive higher lows, reclaiming an important support area.
Will this upward movement mark the end of WIF’s lengthy correction, or is it a relief rally leading to new lows? Let’s find out.
Dogwifhat Price Bounce Reclaims Support
The daily dogwifhat price chart shows that WIF has increased since Aug. 5, when it fell to a low of $1.07. The increase is critical since it validated the 0.786 Fibonacci retracement level as support and caused a reclaim of the $1.47 horizontal support area.
Before the aforementioned low, WIF had not traded below either level since March.
While the bounce is bullish, the price of WIF must break out from the descending resistance trend line at $2 to confirm its bullish trend.
Technical indicators do not confirm if an upward movement will begin.
The MACD has generated a bullish divergence (green) since June but has not moved above 0. Similarly, the RSI is increasing but is still at 50.
So, looking at the wave count is needed to help determine the direction of the future trend.
Wave Count Predicts Upside
The wave count since inception shows that WIF completed a five-wave increase (white) starting in January 2024. The move culminated with a new all-time high price of $4.85 on March 31.
Since then, WIF has fallen inside a descending wedge in a formation that is likely a leading diagonal, as shown by the sub-wave count (black).
If the count is accurate, WIF completed the correction on Aug. 5 with a low of $1.07. If so, it has begun an upward movement, which could be wave B (white) in an A-B-C structure.
A likely target for the top of this rally is between $2.97 and $3.41, created by the 0.5-0.618 Fibonacci retracement resistance levels. This would amount to a roughly 100% increase from the current price.
A breakout from the descending wedge will establish that the upward movement has started.
WIF Likely to See Relief
The daily time frame WIF price action and wave count both suggest a likely breakout from the wedge pattern.
While the long-term trend is still unclear, WIF is expected to increase toward $2.97-$3.41 before possibly reaching a local top.
WIF Price Forms Double Bottom, Dogwifhat Bounces 40%: 85-day Correction Could Be Over
