Dogwifhat (WIF) Correction Ends After 36% Slide — Price Sets Sights on $3.60

Key Takeaways

• Dogwifhat (WIF) bounced at a 94-day ascending support trend line.
• The WIF price might have completed the correction starting on Oct. 14.
• If the WIF correction is over, what’s the next target for the price?

The Dogwifhat (WIF) price began to fall after reaching a high of $2.97 on Oct. 14. After a 36% decline, WIF reached a low of $1.88 on Nov. 4. The price bounced afterward, validating a diagonal and a horizontal support level.

Will the WIF price bounce mark the end of the correction, or is it just a relief rally before new lows? Let’s find out.

WIF Bounces at Support

The daily time frame WIF chart shows the price has increased alongside an ascending support trend line since Aug. 5. So far; it has bounced at the trend line three times, most recently on Nov. 4.

Besides the support trend line, the bounce also validated the $2 horizontal area, which previously acted as resistance.  The bounce occurred after the WIF price decreased by 36% in less than a month.

So, the decline may have just been a retest of the previous breakout level.

Despite the bounce, technical indicators are not bullish yet. The Relative Strength Index (RSI) is at 50, while the Moving Average Convergence/Divergence (MACD) is at 0. The indicators have to cross these thresholds to confirm the bullish trend reversal.

So, the daily time frame does not confirm if a bullish trend reversal has begun.

What’s Next for WIF?

Aligning with the bounce, the wave count suggests the WIF price has completed wave four in a five-wave increase (white). The movement is part of a diagonal inside an ascending, broadening wedge. The sub-wave count is in black.

If the count is accurate, the WIF price can reach a high of $3.60, targeting the 1.61 external Fibonacci level of wave four and the wedge’s resistance trend line. This would mark the end of the five-wave structure.

Breaking down from the ascending, broadening wedge will invalidate the bullish count and suggest the local top is in. Currently, this seems unlikely.

WIF Price to $3.60

The strong bounce that has been going on in the past three days is a sign that the WIF correction is over.

If this is the case, WIF could increase toward $3.60, completing the final portion of its five-wave increase.

About the Author

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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