Dogwifhat (WIF) Price Soars 12% — Bullish Confirmation Still Missing

Key Takeaways

• WIF price bounces off the support at $1.48 and has risen by 12% in 24 hours.
• The Supertrend indicator remains above the price and could limit the upswing.
• Ichimoku Cloud reveals resistance, indicating that WIF could fail to hit $2.

The price of Dogwifhat (WIF), now the third most-valuable Solana memecoin, has risen by 12% in the last 24 hours, bringing it closer to hitting the $2 mark again.

However, despite the surge, the sustainability of the uptrend remains in doubt. Without a solid breakout above key levels, WIF could lose momentum quickly as indicators reveal that it could erase all of its recent gains.

WIF Surge Could Be a False Alarm

WIF price reached $4 on Dec. 7 and showed signs of rising again to its peak in March 2024. However, that did not happen. Instead, the memecoin’s value plummeted to $1.36 on Jan.14.

Two days after hitting this low, WIF found support at $1.48, which led the price to trade at $1.72 as of this writing. Even with the recent uptrend, the Supertrend indicates that WIF  price might struggle to continue rising.

The Supertrend indicator identifies whether a cryptocurrency can sustain its uptrend or otherwise. in an uptrend or downtrend. When the price is above the Supertrend line, it signifies an uptrend.

When the price is below it, it suggests a downtrend. According to the WIF daily chart, the red segment of the Supertrend is still positioned above the WIF price.

If this remains the same, the memecoin might fail to hit the $2 mark in the short term. Also, if WIF eventually hits $2, the overhead resistance of around $2.20 might ensure it fails to hold the price for a long period.

The Average True Range (ATR) also supports this position. Higher values of the ATR indicate increased market volatility, signaling that the prices might experience larger fluctuations.

However, a lower ATR reading suggests decreased volatility, with price action expected to trade within a tight lower range. Since the ATR on the WIF chart is low, it indicates that the cryptocurrency’s value might not experience higher price swings in the short term.

WIF Price Price: Memecoin Challenges Continue

Furthermore, the 4-hour chart shows the Ichimoku Cloud is above WIF’s price.

The Ichimoku Cloud is an indicator that is formed by two lines (Senkou Span A and Senkou Span B. It also consists of key lines such as the Tenkan-sen (Conversion Line) and Kijun-sen (Base Line).

The cloud helps define support and resistance levels, with the area above the cloud indicating an uptrend and below the cloud signaling a downtrend. Since the cloud is above WIF, it indicates that the token might run into resistance at upper price levels.

Going by this outlook, the meme coin might drop below the 0.236 Fibonacci retracement level. If that happens, the WIF’s next target could be a decline to $1.36.

On the flip side, the trend might change if the token successfully breaches the $1.88. In that case, WIF could climb to $2.73.