Dogwifhat (WIF), the memecoin with a loyal following, has been on a tear lately. The price surged over 18% today, reaching a high of $3.85 and extending a bullish trend that began on May 19th. But is this a prelude to a new all-time high, or a temporary blip?
Earlier this year, WIF experienced a meteoric rise, climbing a staggering 3000% from $0.20 to a record-breaking $5 by March 31st. This impressive rally followed a classic five-wave impulse pattern, but was unfortunately followed by a sharp decline.
However, since April 13th, WIF has shown signs of life. The price bounced back from a low of $1.98, finding support at a key Fibonacci retracement level. Since then, it’s been steadily climbing within an ascending channel, with each high exceeding the previous one.
The Crucial Test: (WIF) Breakout or Breakdown?
WIF currently faces a critical juncture. The price is testing the upper boundary of the ascending channel. How it reacts will determine the coin’s future trajectory.
A breakout above the resistance line would be a bullish signal, potentially signifying the continuation of the uptrend that began in May. Following the Elliott Wave theory, this could be wave 3 of a larger bullish pattern, with the potential to propel the price towards its all-time high and even beyond, reaching a new peak of $5.50.
However, a rejection at the resistance line could lead to a bearish scenario. WIF could potentially break down below the ascending channel support, triggering a further decline similar in magnitude to the one witnessed between March 31st and April 13th. In this case, analysts predict a potential drop to $1.22, the next Fibonacci retracement level.
Also Read: DogWifHat (WIF) Soars: Can the Solana Meme Coin Hit $4 by May’s End?
The Bottom Line
Dogwifhat’s recent surge has injected optimism into the memecoin community. While the potential for a renewed bull run exists, the price action at the current resistance level will be crucial. A breakout could lead to a significant increase, while a breakdown could signal further losses. Investors should closely monitor WIF’s price movements in the coming days for a clearer picture of its future direction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
