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Dogwifhat (WIF) Price Targets $3 After 140% Surge

Published
Valdrin Tahiri
Published
By Valdrin Tahiri
Edited by Ryan James

Key Takeaways

  • Dogwifhat (WIF) broke out from a 177-day resistance trend line.
  • The WIF price trades at a critical Fibonacci resistance area.
  • Has WIF started a new upward movement, or is this a relief rally?

Dogwifhat (WIF) has been one of the best-performing large-cap Solana meme coins since Aug. 5. On Sept. 24; its price broke out from a descending wedge pattern to confirm the trend reversal.

WIF has nearly reached a critical Fibonacci resistance area after a 140% increase since the Aug. 5 low. Will it break out or get rejected? Let’s find out!

WIF Price Breaks Out

The Dogwifhat price had fallen under a descending resistance trend line since its all-time high of $4.86 on March 31. The decrease led to a low of $1.07 on Aug. 5.

While the decline caused a breakdown from the $1.50 horizontal area, WIF  reclaimed it shortly afterward. After several higher lows, the WIF price broke out from the trend line, reaching a high of $2.75 today, on Oct. 7.

This was an increase of 140% from the Aug. 5 low.

WIF Price Breakout
WIF/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView 

The daily time frame Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both positive.

The indicators are increasing and above their bullish threshold. Moreover, the bullish divergences that led to the upward movement remain intact.

While a potential bearish divergence is developing in the RSI, it has not been confirmed yet.

Critical Resistance Ahead

The most likely wave count indicates that WIF completed a five-wave upward movement (white), leading to the all-time high price of $4.85 on March 31. The ensuing decline was contained inside a descending wedge, a leading diagonal. The sub-wave count is in black.

If this is the correct count, WIF completed wave A on Aug. 5 and began to increase. So, the increase could be wave B in a longer-term A-B-C structure.

In this possibility, WIF will likely face rejection between the 0.5-0.618 Fibonacci retracement resistance level at $2.97 – $3.41. Then, it could begin wave C to new lows.

WIF Descending Wedge
WIF/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView 

Alternatively, a decisive close above this resistance area will suggest that the price has started a new upward movement. The WIF price will increase to a new all-time high in this possibility.

Therefore, the reaction to the $2.97-$3.41 resistance will confirm whether the ongoing increase is a bullish trend reversal or a relief rally.

Future Trend Unclear

WIF has increased since Aug. 5, accelerating its increase after a breakout from a descending wedge. However, the price is approaching an important resistance area. Whether it breaks out or gets rejected can help ascertain if the increase will lead to a new all-time high or a lower high.

Read More: Dogwifhat Price Prediction 2024: WIF Price Analysis

 

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.
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