WIF Rally Faces Danger After 50% 30-Day Gain 📉
Dogwifhat (WIF), a leading meme coin on Solana, saw a 50% price increase in the last month, nearing the $3 mark. Despite this, technical analysis warns of potential correction.
The price resistance around $2.82 hints at possible downturns, as indicated by the rising wedge pattern formed on the daily chart. This pattern usually points to a price drop after reaching local peaks.
The Money Flow Index (MFI), which monitors buying and selling pressure, indicates a growing potential for selling activity. The dropping MFI suggests reduced bullish support, signalling an extended decline might follow for WIF.
WIF faces resistance around $2.82, notably seen since July. Although past behavior doesn’t predict exact future movements, a 20% price drop could occur, based on Fibonacci retracement levels that often highlight support and resistance zones.
A fall to a 50% retracement level might push WIF down to $2.08. However, if bulls defend $2.33, a rebound to $3.11 is possible, though a quick recovery seems unlikely according to market trends.
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