Dogwifhat (WIF) indicates a trend reversal signal as it creates a falling wedge pattern on the 12-hourly chart. Current spot price is $0.861589 with an appreciable gain of 22.80% over the past 24 hours, indicating rising interest among traders and gaining interest within the market for the said coin.
The descending wedge formation is two downward-moving lines, and the upper trend line is the one signifying lower highs and the lower one higher lows.
This formation tends to suggest decreasing selling pressure, and there is a potential for a bull breakout once the price surpasses the resistance line. Medium-horizon traders tend to use such a formation to identify probable trend shifts and take advantage of suitable entry levels.
Technical commentator Jonathan Carter took a look at the current formation, noting WIF is nearing the upper boundary of the wedge. A breakout here could take the price to projected targets of $1.08, $1.20, and $1.36. These are likely old regions of resistance and the measured movement of the wedge’s ascent.
Crypto Inflows Strengthen WIF Market Sentiment
However, for a reliable breakout, the presence of strong volume plays a crucial role. Without this verification, the pattern could create a false signal.
The chart setup may also involve incorporating technical indicators such as RSI or MACD, which are frequently utilized to support price action and determine inherent strengths or weaknesses.
The broader crypto environment remains positive, with recent reports showing $1 billion of inflows to crypto investment products. This market trend helps reinforce bullish sentiment around WIF and similar altcoins.
However, analysts also warn against the risks on the downside. Forecasting tools on CoinCodex currently signify a possible bearish path with a target of $0.482999 to $0.703803.
Nonetheless, this requires traders to closely observe confirmations and employ disciplined techniques of managing risks during attempted breakout movements.
