Dogwifhat (WIF) Reclaims $1 — Breakout Above $1.40 Could Trigger a Price Frenzy

Key Takeaways

• Dogwifhat (WIF) bounced at a long-term parallel channel.
• The WIF price is approaching the $1.40 horizontal resistance.
• Can WIF maintain its momentum and break out above $1.40?

Dogwifhat (WIF) has been one of the best-performing memecoins since February, increasing by over 400%.

After falling slightly in May, WIF broke out last week and has been pacing the crypto market with a double-digit increase in the past 24 hours.

Since WIF is nearing its February highs, a breakout could trigger a significant rally, taking the coin close to its all-time high price. Let’s examine the charts and see if this is likely.

WIF Price Bounces at Support

The long-term WIF analysis shows that the price has fallen inside a descending parallel channel since its all-time high in April 2024.

The WIF price fell to a low of $0.30 in April and bounced, increasing by over 400% to a high of $1.32, just slightly below the $1.45 resistance area.

If WIF breaks out, the channel’s midline at $1.65 would provide resistance, but the main target will be at the resistance trendline of $3.50.

WIF’s wave count suggests the channel contains an A-B-C correction, which is now complete. The ongoing bounce overlaps with the wave A bottom, so the decline is not a five-wave downward movement.

Furthermore, technical indicators are bullish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) generated bullish divergences (orange) before the rally.

The indicators are rallying and are in positive territory.

Therefore, the long-term WIF price analysis is bullish, suggesting an eventual breakout is likely. Let’s look at a lower time frame and determine when this will happen.

Is the WIF Correction Over?

The short-term wave count shows that the WIF price has completed a five-wave increase (green) since February.

Then, WIF fell inside a descending parallel channel until it reached the 0.382 Fibonacci retracement support at $0.93.

The ensuing bounce (green icon) caused a breakout from the channel, leading to a high of $1.20.

Today, the WIF price attempts to break out from the $1.20 resistance area, which is critical since it represents the highest daily close of the ongoing increase.

If WIF breaks out, it will confirm the correction is over, suggesting a movement above the $1.40 resistance area is next.

Despite the positive signs, a valid bearish count still exists. WIF may be forming the top of wave B in an A-B-C correction (red), after which another decline is likely.

However, this scenario is improbable due to the channel breakout and bullish signs.

WIF Breakout Ahead

The long- and short-term WIF analysis is bullish, suggesting the price will break out soon.

If Dogwifhat closes above the $1.40 resistance area, the coin could more than double and approach the $3.5 resistance area.

If so, a new all-time high could occur in 2025.