Dogwifhat(WIF),thelargestmemecoinbymarketcapitalizationonSolana,registerednotablerecoveryoverthelast30days.ThisreboundensuredthatWIF’spriceclimbedby50%andalmostretested$3.
Despitetheimpressiverally,technicalanalysispointstothepossibilityofacorrection,asthisclassicbearishformationtypicallysignalsapotentialdownturn.
DogwifhatFormsBearishPattern
OnOctober14,WIF’spricealmosthit$3.However,theresistanceat$2.82ensuredthatthememecoincouldnotreachthethresholdagainforthefirsttimesinceJuly.
Followingthisdevelopment,BeInCryptoobservedthatWIFhadformedarisingwedgeonthedailychart.Alsocalledanascendingwedge,thispatternariseswhentwoupwardslopesconverge,signalinganimminentdownwardtrendreversal.
Inmostcases,thiswedgeindicatesthatacryptocurrencyhashitthelocaltop.ForWIF,thelocaltopappearstohavebeenaround$2.96,wherethewickofthegreencandlestickhitonMonday.
DogwifhatPriceAnalysis.Source:TradingView
TheMoneyFlowIndex(MFI)isanotherindicatorsignalingapotentialcorrectionforWIF.TheMFIassessesbothvolumeandpricetogaugebuyingandsellingpressureinthemarket.
AnincreaseintheMFIreflectsrisingbuyingpressure,whileadecreasepointstogrowingsellingactivity.Asshownbelow,theMFIontheWIF/USDdailycharthasdroppedandisonthevergeofslippingbelowtheneutralline.
Giventheseconditions,itsuggeststhatWIF’spricehaslostbullishsupportandmightundergoanextendeddecline.
DogwifhatMoneyFlowIndex.Source:TradingView
WIFPricePrediction:20%CorrectionNext
AcloserlookatthedailychartsuggeststhatWIFcouldstruggletobreakabove$2.82,asitappearstobefollowingadownwardtrendseensinceJuly.
OnJuly22,WIFreached$2.82butfacedresistance.ByAugust6,thepricehaddropped55%to$1.25.However,thisdoesn’tnecessarilymeanDogwifhatwillexperienceasimilardecline.
Still,aquickreboundseemsunlikely.WIFcouldfallby20%,asindicatedbyFibonacciretracementlevels,whichhighlightpotentialsupportandresistance.
DogwifhatDailyPriceAnalysis.Source:TradingView
Ifthetokendropstothe50%retracementlevel,itmayreach$2.08.However,ifbullsdefendthe$2.33support,WIFcouldreboundto$3.11.
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