If the WIF Correction Finally Over? | Credit: Hameem Sarwar
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Key Takeaways
Dogwifhat (WIF) price has declined under a long-term descending resistance trend line.
WIF formed a double-bottom pattern with bullish divergences between June and July.
Is WIF’s price correction over, or is this a temporary relief rally?
On July 15, WIF surged by 24%, making it the second biggest gainer over the past day. The surge follows a week of positive performance, during which the price marked a high low, suggesting a potential uptrend.
With WIF moving with fresh confidence, does the recent price action indicate its correction is over, or will it perform similarly to what it did earlier this year?
WIF Recovers After 85-Day Decline
WIF has emerged as one of the biggest gainers this year, marking a 5,400% increase in the first half of the year and reaching an all-time high of $4.86 in March. However, the memecoin’s price has steadily declined since then, following a descending resistance trend line.
On June 24, WIF tapped its low of $1.47, losing 70% since registering its all-time high. However, things turned for the better on July 11, when Dogwifhat marked a slightly high low and started moving towards the upside.
While WIF is still trading below the descending resistance trend line at the time of writing, its price action over the past 30 days resembles a double bottom, which is considered a bullish pattern.
Echoing the bullish sentiment, bullish divergences in both the weekly RSI and MACD (green trend lines) bolstered WIF’s double bottom. These divergences are critical as they often signal impending bullish trend reversals. Notably, this is the first time in WIF’s price history that the weekly RSI and MACD have shown such bullish divergences.
With price action and indicators suggesting that WIF could reach the resistance trend line in the coming weeks and potentially break out, the wave count indicates a new all-time high is likely.
WIF Price Prediction: New All-Time High Likely?
The wave count illustrates that WIF completed a five-wave increase between January and May 2024, followed by an A-B-C corrective structure. This correction was nearly as long as the upward movement, confirming the accuracy of the wave count.
The wave count now aligns with the price action and indicator readings, predicting a breakout from the resistance trend line. If that happens, the next resistance will be at $3.60, created by the 0.618 Fibonacci retracement level and a horizontal resistance area.
If WIF breaks out from this level, it could pave the way for a potential new all-time high, targeting the previous peak around $4.85 and potentially extending to $6.90, as suggested by the 1.61 external Fibonacci retracement of the previous drop.
However, WIF is currently trading below a descending resistance trend line. Failing to break above this trend line could result in a correction, potentially leading to new lows. As it stands, no signs point to this as the more likely outcome.
WIF Price Correction Likely Over
Based on the weekly timeframe, price action, indicator readings, and wave count, all signs point to the correction in WIF’s price being concluded. A breakout above the resistance trend line would bolster this view, and a close above the $3.60 level would solidify it. If these conditions are met, a new all-time high for WIF is probable, with a potential target set at $6.90.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
