Dogwifhat (WIF), the largest meme coin on the Solana network, has experienced a significant price recovery over the past 30 days, rising by 50% and nearing the $3 mark. However, technical indicators suggest that this impressive rally may be followed by a potential price correction.
Bearish Pattern Forming for WIF
On October 14, WIF’s price nearly reached $3 but was stopped by resistance at $2.82, failing to break this level since July. Following this, technical analysis reveals that WIF has formed a bearish rising wedge pattern on the daily chart. This formation often signals that a cryptocurrency may be heading for a downward trend.
A rising wedge typically indicates that the asset has reached its local top. For WIF, this local top seems to have been at $2.96, the highest point reached by the token on October 14.
Additionally, the Money Flow Index (MFI) indicates weakening buying pressure for WIF. The MFI, which tracks both price and volume to evaluate market momentum, shows a decline. This suggests that selling pressure is increasing, and a potential correction could be on the horizon.
WIF Price Prediction: Potential 20% Drop
Analyzing the daily chart, WIF may struggle to surpass the $2.82 resistance level. Since July, the token has faced downward pressure, dropping by 55% to $1.25 in August. While the current trend may not result in a similar drastic decline, a 20% correction could occur.
According to Fibonacci retracement levels, WIF could drop to the $2.08 support level. However, if bulls successfully defend the $2.33 support, there may be a chance for the token to rebound and test $3.11.
