Analysts have observed Dogwifhat (WIF) forming a rising wedge, which may signal an upcoming bearish reversal despite recent price gains.
If WIF maintains support at $2.50, it could rebound to $3.10, though risks of a downside breakout remain high.
Traders are closely monitoring WIF’s price performance near $2.50, with analysts forecasting a possible rise to $3.20 before correction.
According to a recent observation by renowned crypto analyst Ali Martinez, Dogwifhat(WIF), a meme-based cryptocurrency built on Solana, may be heading for a bearish reversal. He noted that WIF could be forming a rising wedge, a technical pattern that often signals a reversal in price direction.
https://twitter.com/ali_charts/status/1846881645606912336
An upward price formation characterizes this pattern, but the space between wave high and wave low is contracting, and both lines converge. The upper line is to indicate the highs, while the lower line is used to plot the lows. While this chart pattern does show an increase initially, it is one of the most bearish reversals once support has been violated.
Analyst Prediction: Potential Rebound Before a Decline
Ali Martinez shared his analysis of the WIF market, forecasting that if the cryptocurrency holds its lower boundary support at $2.50, it could rebound toward $3.10. Despite this short-term positive movement, Martinez warns that the rising wedge pattern implies a likelihood of a significant drop once the wedge breaks downward.
Currently trading near $2.50, Dogwifhat could rise to $3.20 per coin after a potential correction, provided the support holds. However, the pattern also signals a possible sharp decline, meaning that traders should remain cautious of a downward breakout in the future. This poses a challenge, as prices can rise within the wedge while suggesting an eventual breakdown.
Market Response to the $2.50 Support
Traders remain focused on Dogwifhat's performance around the critical $2.50 support level. Should this support remain intact, a short-term upward movement seems likely, but the long-term outlook could involve a downward trend. The coming days are crucial for traders watching how WIF reacts to the $2.50 support boundary.
The post Dogwifhat Price Could Rebound to $3.10, Analysts Predict Bearish Risks appeared first on Crypto News Land.
