Dogwifhat meme coin likely to provide another buying opportunity

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.