Dojoifat (WIF) price is set to decline after the collapse of the bullish pattern
The meme coin based on Solana Dojoifhat (WIF) has reversed its recent uptrend after breaking the ascending channel. It was trending within this channel between July 14 and 15.
At press time, WIF is trading at $2.55, heading towards a new low.
Dujuifhat breaks its support, but there is a glimmer of hope
Evaluating the price movements of WIF on the daily chart revealed that it was trading within an ascending channel between July 14 and July 23. During that period, the meme coinâs price rose by 83%.
An ascending channel is a bullish signal that forms when the price of an asset moves between two parallel ascending lines. The upper line of the channel acts as resistance, while the lower line acts as support.
On July 23, WIF closed below the support level at $2.55 and has been trending lower since then.
Generally, when the price of an asset falls below the lower line of an ascending channel, it means that bulls have failed to defend the support. This indicates that the assetâs uptrend has weakened, and selling pressure is gaining momentum. This is often a prelude to a price decline.
However, readings from other key technical indicators suggest that WIFâs current downtrend may be temporary as the bullish bias towards the meme coin remains significant.
For example, the WIF stop and reverse parabolic (SAR) indicator points are still below their price.
This indicator is used to identify potential reversal points for the asset price. When its points settle below the price, the market is considered to be in an uptrend. This position also confirms that the current uptrend is intact and may continue.
Moreover, WIFâs key momentum indicators show that market participants continue to accumulate the meme coin.
At the time of writing, the Relative Strength Index (RSI) for WIF is in an uptrend at 59.33, while the Money Flow Index (MFI) is at 73.06. The values ââof these indicators indicate that WIF accumulation is significantly outperforming selling activity.
These indicators measure overbought and oversold market conditions. At their current values, buying pressure on WIF remains high despite the price falling below the support level.
WIF Price Prediction: Rise to $2.77 or Drop to $1.48 Possible
If the demand for WIF continues to rise, it may push its price above the support and return it to the ascending channel, leading the meme coin to trade at $2.77.
However, if the downtrend continues, the altcoin may drop to $1.48.
