Declizer called attention to the current price action of dogwifhat (WIF), saying that the price has been struggling. However, the support at $1.34 needs to hold for the bearish move to stop. Declizer believes that this could trigger a trend reversal.
The trend reversal, according to the analyst, is expected to position WIF to lead alongside PEPE and BOME in the bull rally.
The analyst noted that WIF had gained by 24x in the past. This points to how high the price can spike when it rallies and the possibilities for the meme coin.
Dogwifhat Technical Analysis
Crypto analytics firm AltFINS also released a price analysis of dogwifhat. The analysis recognizes that the price is in a downtrend, trading in a Channel Down pattern, which typically resolves in a bullish breakout and a trend reversal.
With emerging patterns, traders who believe the price is likely to remain within its channel can initiate trades when the price fluctuates within its channel trendlines. That is, they can sell when the price is at the top of the channel and buy when it is at the base.
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However, those who see a breakout coming can initiate a trade when the price breaks through the channel’s trendlines, either on the upper or lower side. When this happens, the price can move rapidly in the direction of that breakout.
Based on the current metrics, the analytics company posted that the price direction looks strongly bearish in the short, medium, and long term.
The Moving Average Convergence Divergence Indicator shows that the MACD Line is still above the MACD Signal Line, but momentum may have peaked since MACD Histogram bars are declining, which suggests that momentum could be nearing a downswing.
The nearest support for a possible reversal is $1.5, while the nearest resistance is at $2.00.
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