Dogwifhat (WIF) Price Cools Off After 180% Rally — Here’s What Could Happen Next

Key Takeaways

• The Dogwifhat (WIF) fell after reaching a high of $2.97.
• The WIF price failed to clear an important Fibonacci resistance.
• Will WIF clear this resistance area or will it get rejected instead?

The WIF price broke out from a long-term resistance trend line on Sept. 24, accelerating its recovery. The increase culminated with a high of $2.97, an upward movement of 180% since the low.

While the price has fallen since the high, it still trades above multiple horizontal support levels. Let’s analyze the WIF price movement and see if it will continue falling or regain its footing and make a breakout attempt instead

WIF Price Breaks Out

The daily time frame Dogwifhat price shows a decline under a descending resistance trend line since the all-time high of $4.86 on March 31. During the decline, WIF fell to a low of $1.07 on Aug. 5. This decreased 78% since the aforementioned high.

However, the WIF price regained its footing almost immediately after the low, reclaiming the $1.50 horizontal area. Such reclaims are considered bullish developments and often lead to upward movements.

To confirm this positive sentiment, WIF broke out from the trend line on Sept. 24. the trend line had existed for 177 days.

After the breakout, WIF reached a high of $2.97 on Oct. 14, but the 0.5 Fibonacci retracement resistance level rejected it. The upward movement amounts to a 180% increase since the low.

Technical indicators are mixed. While the Relative Strength Index (RSI) is above 50 and increasing, it has generated a bearish divergence. Such divergences often lead to sharp downward movements.

The WIF price today is in the process of creating a bearish engulfing candlestick. If it does, it would confirm that a short-term decline has started.

Let’s look at a shorter-term chart to see if the price can regain its footing or if it will continue falling in the next few days.

Short-Term Weakness

The shorter-term six-hour chart gives a bearish outlook because of the price action and the wave count.

The WIF price action shows an ascending wedge developing since Sept. 29. This pattern is considered bearish, meaning that it usually leads to breakdowns.

The wedge’s resistance trend line rejected the WIF price thrice in the past two weeks (black icons).

Moreover, the wave count shows a completed A-B-C corrective structure, where waves A: C had a 1:1.61 ratio.

Therefore, the short-term WIF outlook is bearish and suggests the price will break down from its ascending wedge. If this happens, WIF can reach the 0.5 Fibonacci and horizontal support at $2.

The reaction once it gets there can determine if the future trend will be bullish or bearish.

Breakdown Ahead

While the WIF price broke out from a long-term diagonal resistance trend line, it failed to clear a confluence of Fibonacci resistance levels. Moreover, the shorter-term price action and wave count show weakness.

If WIF breaks down from its ascending wedge, it can fall to the closest support at $2.

Read More: Dogwifhat Price Prediction 2024: WIF Price Analysis