Dogwifhat [WIF], a memecoin built on the Solana network, is currently displaying signs of resilience in the face of a probable short-term adjustment. Following recent CryptoCrypto analysis that suggested a potential drop to the $2 range, WIF appears to be maintaining its position around the $2.50 threshold.
Traders of WIF are continuously purchasing during downturns, reigniting a positive outlook. With the emergence of a rising wedge pattern, there is an opportunity for an upsurge, especially during this optimistic period.
If WIF manages to uphold the lower limit of its wedge at $2.50, there is a likelihood of a surge to $3.10, presenting an opportunity for profits of up to 20%. Conversely, a breach beneath this threshold could result in a revisit to the $2 area, as previously indicated.
WIF has rebounded from its lower trendline and is progressing towards the upper resistance level. Sustaining the $2.50 mark could potentially propel the price upwards.
Nevertheless, a drop below $2.50, authenticated by a reassessment, may nullify the optimistic outlook and induce a decline in WIF towards the $2.20 or $2.00 levels.
The $2.50 milestone aligns with the lower trendline of the ascending wedge, rendering it a critical juncture for WIF’s short-term performance.
Heatmap of Liquidations
At the time of writing, dogwifhat was trading under $2.60, with approximately $675,000 worth of perpetual futures contracts situated for liquidation at this value.
A mere two-cent increase in the price could elevate liquidations to $790,000, essentially setting the $2.70 region as a feasible target. Price variations frequently gravitate towards zones of high liquidity, potentially propelling WIF upwards.
Conversely, a descent to the $2.40 area could prompt liquidations valued at $824,000, potentially driving the price lower to $2.00. This scenario would also denote a retesting of a fractured double top pattern on the daily scale.
Surge in WIF Holders Amidst Market Rebound
Despite prevailing short-term uncertainties, traders have commenced accumulating WIF, signaling a probable pivot towards a bullish stance. Data from the past week indicates an uptick in the number of WIF holders across various time frames.
Presently, there are 189,350 WIF holders, with 56% of them possessing holdings exceeding $10 worth of WIF. The consistent increase in holders, alongside minimal downturns, implies that market sentiment remains positive.
Given that memecoins largely thrive on community backing, this development seems favorable for WIF’s long-term outlook. Moreover, the broader market has observed substantial rebounds in Bitcoin, meme coins, and AI tokens, contributing to WIF’s potential for future growth.
Amidst the ongoing prosperity of memecoins, WIF seems to offer a strong prospect for long-term investment. For investors seeking to capitalize on potential future expansions, strategically averaging costs around the current price level could be advantageous, given WIF’s favorable positioning for further upswings.
While dogwifhat confronts immediate hurdles, its bullish potential remains intact. A breach above $2.50 could herald notable gains, whereas a decline below this level might trigger additional adjustments.
Nonetheless, the increasing community support and expanding holder base indicate a promising long-term trajectory for WIF.