Dogwifhat meme coin likely to provide another buying opportunity
- Dogwifhat price is consolidating inside a broadening wedge setup.
- The recent crash knocked WIF to retest the lower limit of this technical pattern.
- WIF is likely to sweep $2.32 before it triggers a rally to the upside.
Dogwifhat (WIF) price witnessed a brutal crash on Friday following Bitcoin’s footsteps. While some altcoins are recovering, WIF is likely to slide even lower before it attempts a recovery.
Also read: Dogwifhat 10% drop could be ‘catastrophic,' but traders bet on bounce
Dogwifhat price in search of stable support
Dogwifhat price has produced four higher highs and four lower lows since April 14, leading to the formation of a broadening wedge. Friday’s crash retested the lower limit of this wedge but short-term recovery pushed WIF to $2.83, where it currently trades.
Going forward, investors can expect Dogwifhat to break the broadening wedge to the downside and sweep the $2.32 support level. How WIF reacts to this level is key to determining where the dog-themed crypto will head.
A sweep followed by a reclaim would be the first sign that the dogwifhat meme coin is ready to move higher. Beyond this level, WIF needs recovery above the broadening wedge’s lower limit. If these two conditions are met, the meme coin could eye a retest of $3.25.
Read more: Dogwifhat price pumps 5% ahead of possible Coinbase effect
WIF/USDT 1-day chart
Regardless of the potential for recovery, if dogwifhat price breaches the $2.32 support level, it will create a lower low and invalidate the bullish thesis. This development could see WIF crash 14% to tag the $2 psychological level.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
