Crypto analyst Rekt Capital has shared insights on the potential price movement of Dogwifhat (WIF). The analyst’s tweet and accompanying chart suggest a bullish outlook for the meme token.
Rekt Capital’s technical analysis points to a substantial breakout from a descending wedge pattern, indicating a possible trend reversal for WIF. According to Rekt Capital’s analysis, WIF has successfully retested the $2.52 level as support.
Besides, this retest, marked by a blue circle on the shared chart, represents a critical moment for the token’s price action. The $2.52 level, which previously acted as resistance, has now flipped to support.
The successful support retest at $2.52 has positioned WIF for potential further gains. Rekt Capital suggests that this retest could serve as a springboard for the token to move across its current trading range. The analyst’s chart indicates a range defined by red lines, with the upper boundary serving as the next key resistance level.
What you'll learn 👉
Upside Target Identified
Rekt Capital’s analysis identifies $3.22 as the next price target for WIF. This level represents the Range High resistance on the chart shared by the analyst. The move from the current price to $3.22 would signify a continuation of the bullish trend that began with the descending wedge breakout.
The projected price movement to $3.22 represents a potential gain of 42.86% from the support level. It’s worth noting that this percentage increase has already been observed since the initial breakout and retest, as WIF has shown strong upward momentum in recent trading sessions.
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Technical Significance of the Breakout
The breakout from the descending wedge pattern observed in WIF’s price chart is a technically significant event. Descending wedges are typically considered bullish reversal patterns in technical analysis. The strong move out of this narrowing range suggests a shift in market sentiment from bearish to bullish.
Per data from CoinGecko at press time, WIF trades at $2.64. The memecoin has seen a pullback dipping by 7.24% over the last day but maintaining a positive 5.55% rise over the week.
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