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Highlights
- A falling wedge pattern drives the current correction trend in WIF price.
- The inverted head and shoulder pattern assisted the meme coin to form a local bottom at $1.47.
- The 24-hour trading volume in Dogwifhat is $406 Million, indicating a 17.6% loss.
Dogwifhat Price Analysis: The cryptocurrency market entered July on a bullish note as Bitcoin jumped 2% on Asian Trading hours to hit $63880. The renewed buying pressure has uplifted altcoins to a fresh relief rally with the meme coins leading in growth due to their volatile nature. Dogwifhat, the Solana-based memecoin, has emerged as one of the top gainers, experiencing an 11.5% surge in the last 24 hours. This upward movement indicates a potential reversal pattern, setting the stage for a higher rally.
Also Read: Breaking: German Govt Dumps 400 BTC To Major Exchanges, Transfer Spree Continues
Dogwifhat Price Analysis: Key Indicators Signal Major Reversal
The easing supply pressure in the crypto market after Bitcoin’s reversal from $60000 has bolstered several altcoins to form the local bottom. Dogwifhat clearly shows this phenomenon in a 4-hour chart as the price reverted immediately from the $1.478 mark.
Within a week, the bullish upswing propelled WIF by 48.83% to reach the $2.19 trading price, while the market cap surged to $2.2 Billion. A deeper analysis of the technical chart shows the V-shaped recovery develops an inverted Head & Shoulder pattern.
In theory, this chart pattern is commonly spotted at major bottoms as an early sign of trend reversal with new higher low formation. With an intraday gain of 4%, the Dogwifhat coin teases a bullish breakout from the pattern’s neckline resistance around $2.3.
An upside breakout with a 4-hour candle closing will provide buyers with suitable support to lead a sustainable recovery.
Also Read: Cryptos To Buy On This 1st July To Stay Bullish Throughout Month
Daily and 4-Hour Chart Pattern Signal Bullish Trends for WIF
An analysis of the daily chart shows the June market correlation and recent recovery assisted WIF prices to develop a falling wedge pattern. This reversal pattern encourages the asset to resonate within two converging trendlines until it develops sufficient momentum to break the diagonal resistance trendline.
Thus, the InH&S pattern of the 4-hour chart could be the necessary precursor for a bull cycle within the wedge. The first pattern breakout could surge the memecoin 52% at $3.3 and challenge the overturned.
The wedge pattern breakout will be the key signal of uptrend continuation, bolstering Dogwifhat to target $4, followed by $4.86.
Technical Indicator
- ADX: A downtick in the Average Directional Index indicator at 21% accentuates the prior trend (bearish) losing its momentum, which could bolster buyers from taking over.
- EMAs: The coin price trading below the daily Exponential Moving Average (20, 50, and 100) indicates the market sentiment is still bearish and the path to least resistance is up.
Frequently Asked Questions (FAQs)
1. What is an inverted Head & Shoulders pattern in technical analysis?
2. What is the significance of EMAs in technical analysis?
3. What does a falling wedge pattern signify in a price chart?
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