Dogwifhat (WIF) Price Drops 15% — Key Levels to Watch for a Potential Bounce

Key Takeaways

• The Dogwifhat (WIF) price has declined since Oct. 14.
• The 0.5 Fibonacci resistance rejected the Dogwifhat price.
• Can WIF regain its footing and make another breakout attempt?

WIF is the largest meme coin in the Solana blockchain, currently ranked 37 based on its market capitalization. However, its performance in the last seven days has been negative, breaking from the trend of other meme coin gainers. 

The decline was sparked by a rejection of an important Fibonacci resistance level, which led to a breakdown of a bearish pattern. Let’s examine the WIF price action and see if the meme coin can regain its footing.

Dogwifhat Price Drops After Breakout

The WIF daily time frame analysis shows the price has fallen since reaching its all-time high of $4.86 on March 31. The decrease followed a descending resistance trend line.

After reaching a low of $1.07 on Aug. 5, WIF increased and reclaimed the $1.05 horizontal area. The upward movement rendered the previous breakdown invalid.

After creating several higher lows, WIF broke out from the trend line on Sept. 24, after 177 days.

The breakout led to a high of $2.97 on Oct. 14, reaching the 0.5 Fibonacci retracement resistance level. The WIF price has fallen since then, confirming the level as resistance.

Technical indicators give mixed signs. While the Relative Strength Index (RSI) generated a bearish divergence (green) before the rejection, it has now generated a hidden bullish one.

A similar reading is visible in the Moving Average Convergence/Divergence. Right after the rejection, the indicator generated a bearish cross but has now created a hidden bullish divergence (yellow).

Ongoing Breakdown

While the daily time frame chart is mixed, the short-term six-hour one gives a bearish outlook because of the wave count and price action.

The wave count suggests the WIF price has completed an A-B-C correction (black). In it, waves A:C had a 1:1.61 ratio. If the count is accurate, the structure ended on Oct. 14.

The price action aligns with this possibility. Since Sept. 16, WIF has created an ascending wedge, considered a bearish pattern.

Because of the ongoing drop, WIF broke down from the pattern on Oct. 19. This indicates that the previous upward movement has ended, and the A-B-C structure is complete.

So, the WIF price can fall to the closest horizontal and Fibonacci support level at $2.01. The reaction once it gets there will be key in determining if the future trend is bullish or bearish.

WIF Price to $2 Next?

The daily time frame WIF chart gives mixed readings, failing to confirm the trend’s direction.

However, the shorter-term six-hour one is bearish because of a breakdown from a wedge and the bearish price action.

A short-term decline toward $2 could occur before the price resumes upward.