dogwifhat Price Analysis: WIF Inside the Coiling Pattern May Push 42% Upswing
dogwifhat Price Analysis: The cryptocurrency market has seen diminished volatility over the weekend as it seeks to stabilize following a recent downturn. Bitcoin has successfully maintained a position above $65,000, though it hasn’t yet shown clear signs of a reversal. While most major altcoins remained steady without significant changes, the Solana-based memecoin, Dogwifhat, stood out by gaining 5%, surpassing the $2.5 mark. Will this upward trend continue?
Also Read: Bitcoin Price Analysis: What’s Next For BTC As Crypto Fear And Greed Index Nosedives
Will Dogwifhat Hold $2 Amid Porlong Market Consoldation?
An analysis of the daily chart shows the Dogwifhat price has been trading sideways for the past two weeks rebounding from two converging trendlines. The dynamic resistance and support driving the current consolation indicate the formation of a symmetrical triangle pattern.
During the recent market downturn, the price of WIF plummeted from $4.08 to a low of $2.2, marking a 45.85% decline. Several analysts have cited Bitcoin miners’ capitulation as one of the primary factors contributing to the intensified selling pressure observed this week.
However, the renowned trader Alicharts recently pointed out that Bitcoin’s average mining cost is currently $86,668. Historically, Bitcoin tends to surge above this cost, indicating a potential upward price movement.
#Bitcoin‘s average mining cost is currently at $86,668.
And guess what? Historically, $BTC always surges above its average mining cost! pic.twitter.com/S3UkwgvS3N
— Ali (@ali_charts) June 15, 2024
The accompanying chart highlights past instances where Bitcoin’s price consistently rose above its average mining cost, suggesting a bullish trend could be imminent.
Also Read: Crypto Headlines of The Week: Bitcoin & ETH Ride Rollercoaster, XRP & LUNC Make Waves
With the BTC price stabilizing above $65000, the Dogwifhat took the opportunity to rebound from combined support of $2.2 and the triangle’s lower trendline. The upswing recorded a 9% jump in 48 hours and pushed the WIF price to $2.5.
If the pattern holds true, the WIF price should aim to challenge the upper boundary of the triangle at $3.5 registering a potential gain of 42%.
Having said that, the sideways action in this memecoin will persist until the triangle pattern is intact.
Technical Indicator
- EMAs: A bearish crossover between the 50-and-100-day Exponential Moving Average could accelerate the selling momentum and continue consolidation above lower support before the bullish bounce.
- Vortex Indicator: A notable bearish crossover between the VI+ (Blue) and VI- (pink) indicates that the bears still hold a firm grip over this asset.
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