As the cryptocurrency market slows down, the memecoin Dogwifhat (WIF) remains on the rise. Yet, recent price action indicates a pattern that could signal upcoming turbulence. Let's dive into the technical analysis to uncover what the future holds for WIF.
On the daily chart, Dogwifhat (WIF) remains trapped in a symmetrical triangle, but short-term signals appear mixed. A notable fractal pattern, reminiscent of mid-June price action, is repeating in this consolidation phase.
Last June, WIF fell below its 25-day moving average. The failed recovery attempt above this level subsequently triggered a 36% decline, bringing the price back to the support at $0.64.
Today, a new breach of the 25-day moving average ($1.01) has been observed, raising fears of a potential repeat of this bearish scenario.
If WIF fails to sustainably rise above its 25-day moving average, the pattern suggests a possible slide toward the lower boundary of the triangle, coinciding with the 200-day moving average support at $0.76. This would represent a decline of approximately 17% from current levels.
This level also coincides with a massive bullish trendline and an important liquidity zone from VP Order Blocks. However, this bullish trendline has a high probability of being liquidated, which could drive WIF toward the next liquidity zone at approximately $0.59.
However, a decisive breakthrough and close above the 25-day moving average could reverse the bearish trend and spark renewed buyer interest, paving the way for a bullish breakout of the symmetrical triangle. A return to $1.4 would then be possible.
Nevertheless, the chart indicates that WIF has been rejected twice from this zone between $1 and $1.4. A continuation of the bearish correction is therefore more likely as long as buyers remain on the sidelines.
Currently, $1.18 represents the protected upper level of smart money and absolutely must be broken to resume an upward momentum.
Dogwifhat’s (WIF) recent price action highlights a familiar technical pattern that raises short-term concerns. Although the memecoin has displayed bullish momentum for several weeks, investors would be wise to closely monitor the price behavior relative to the 25-day moving average.
A decisive breakthrough of $1.18 could revive upside potential, while another failure would pave the way for a significant correction.
As always, conduct your own analysis and exercise caution in your investment decisions.
To attempt buying the WIF dip at support levels like smart money does, here’s a guide to obtaining it on Bitget along with the strategy to adopt :
To capitalize on this dynamic, here’s an optimized strategy :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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