The crypto market is witnessing a resurgence of meme coin enthusiasm, and Dogwifhat (WIF) is no exception. After a significant price surge last week, WIF’s weekly chart presents a potential “God candle,” a bullish signal suggesting a potential trend continuation.
Solana’s Rise and the Meme Coin Effect
The growing demand for meme coins aligns with Solana’s own positive momentum, with the blockchain platform targeting a price of $200. This synergy could propel WIF even higher, raising the question: Will the meme coin bull run continue, and can WIF reclaim a bullish trajectory?
Following a hefty 67% correction, WIF is poised for a bullish turnaround as the overall market recovers. The underlying support at the $1.50 mark has held strong, and the Solana-based meme coin has rebounded significantly over the past week.
This bullish sentiment is further bolstered by a massive “God candle” in the weekly chart, resulting in a “morning star pattern” – a technical indicator that often signifies an upcoming uptrend. However, WIF faces a hurdle: a solid resistance trendline established during a previous correction.
Technical Analysis Paints a Bullish Picture
Despite the intraday dip of 2.37%, WIF has managed to break through the $2.30 neckline resistance following the formation of a “double bottom reversal” pattern at the $1.50 support level. This reversal is accompanied by bullish divergence in the daily RSI indicator, which is currently nearing the overbought zone.
Furthermore, the MACD indicator adds confidence to the bullish case, with its lines crossing into positive territory and generating bullish histograms. Notably, WIF has surpassed all key EMAs (Exponential Moving Averages), including the 50, 100, and 200-day lines, further hinting at a potential bullish crossover between the 50 and 100-day EMAs in the near future.
Also Read: Dogwifhat (WIF) Rebound Signal? Buying Pressure Surges 300k As Price Eyes $2
Can WIF Reach $5?
The current recovery rally is facing resistance at the overhead trendline, suggesting a potential delay in a breakout. However, if the broader market continues its positive momentum, WIF is likely to break through this resistance and finally end its correction phase.
Based on Fibonacci retracement levels, a potential breakout could see WIF reach the 50% level at $3.62. If the bull run gains further traction, the meme coin could even reach a price of $5.77. Conversely, a reversal could result in a retest of the $2.50 support level.
While the recent price action and technical indicators paint a promising picture for WIF, investors should be cautious. Meme coins are known for their volatility, and even strong technical signals don’t guarantee future success. As always, thorough research and a well-defined risk management strategy are crucial before investing in any cryptocurrency.
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.
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