The Solana-based meme coin, Dogwifhat (WIF), recently reached a new all-time high of over $0.53. Its performance has been impressive, with an over 100% increase in the past week and a 700% rise from January 8 to January 18.
This surge is partially down to Binance supporting the token by launching WIF/USDT perpetual contracts and BitMEX’s perpetual swap contract WIF/USDT. Currently, WIF, which has a market cap of about $427 million, is just outside the top 130 cryptos. PancakeSwap (CAKE) is the current number 100 position with a $707 million market cap.
With that being said, can WIF continue its upward trajectory?
After Dogwifhat was released in November, it consolidated as it searched for a fair market value. At first, we saw an increase to $0.33 on December 22, followed by a lasting downtrend forming a descending triangle.
A new uptrend began on January 8. Now, because the price spiked to around $0.54 and found resistance, it could indicate the completion of this uptrend. The price of WIF, which, at the time of writing (January 18), was about $0.4245, is in the final wave of a five-wave pattern.
The 15-minute chart RSI showed a divergence. It was in a downtrend while the price rose, signaling a potential reversal. If this is true, we could see the start of a corrective phase that can lead the price back down to the $0.24 area.
If this plays out, that would be the first bull market correction and a possible wave two from the uptrend. This means WIF could reach new heights in 2024. First, though, it needs to prove that its support plateau has risen.
Projecting the correction target with the Fibonacci retracement tool at its optimal 0.618 level, we find a zone of $0.24. This corresponds to the support level of the previous low, which is presumed to be the end of wave four.
If it finds support there and makes a decline in three-waves, which is typical for the first bull market correction, the next decisive move could lead the price to $0.80 and even higher.
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