The crypto market witnessed a sudden pump during Sunday’s low volatility as Bitcoin headed back to $70,000. Amid the renewed bullish sentiment for the Quater 4 rally, a crypto analyst highlights potential bottom formation in Dogwifhat price with key technical indicators, proposing a reversal opportunity.
By press time, the WIF price traded at $2.5 with an intraday gain of 5.75%. Conservatively, the asset market cap rallied to $2.5 Billion.
Analyst Predicts Bottom for Dogwifhat as WIF Targets $3 on Bullish Momentum
In a recent tweet, analyst Bluntz highlights a bullish outlook for the dog-themed meme coin Dogwifhat, studying the WIF/SOL pair. The layer-1 cryptocurrency Solana has showcased substantial bullish momentum as the crypto market is gradually adopting the Q4 rally.
While the SOL’s strength could boost the top memecoin under its umbrella, the Dogwifhat (WIF) caught the analyst’s attention as a promising candidate for a potential breakout.
According to Bluntz, the WIF/SOL pair appears to be bottoming out on the 4-hour chart. He notes a “5 down” wave pattern, a common signal for the end of a correction phase, accompanied by significant divergence.
This setup, particularly with the heavy divergence, suggests a possible trend reversal for the Dogwifhat price.
WIF Price Analysis Signal 1.5% Surge Before Key Breakout
In the past two weeks, the WIF price has showcased a steady downtrend from $2.97 to $2.1 low, accounting for a 26% loss. This bearish turnaround resonating strictly within two downsloping trendlines reveals a bull flag pattern formation.
Theoretically, this chart setup is characterized by a long ‘Pole’ representing the dominating trend and a ‘Flag’ portion to display temporary correction. This retracement holding its position above the 50-day exponential moving average accentuates a health pullback for the next leap.
Currently, the Dogwfihat price trades at $2.48, standing 1.5% away from challenging the flag resistance. A potential breakout from the overhead trendline will give buyers sufficient support to drive a higher recovery.
The post-breakout rally could drive the asset 32% up to challenge the $3.3 high.
On the contrary, if crypto sellers continue to defend the flag resistance, the dogwifhat could witness renewed selling pressure and drive an extended consolidation.
Frequently Asked Questions (FAQs)
The analyst signals a bottom formation for Dogwifhat and predicts a potential breakout, targeting $3 as WIF gains bullish momentum amid a broader Q4 rally.
Currently trading at $2.48, WIF stands 1.5% away from breaking the bull-flag resistance. A breakout could push the price up by 32%, potentially reaching $3.3.
Dogwifhat is forming a bull-flag pattern, characterized by a downward-sloping “Flag” after a strong “Pole” rally
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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