It has come to light, thanks to an observation by prominent crypto analyst Ali Martinez, that popular meme cryptocurrency dogwifhat (WIF), based on Solana, could be forming a rising wedge pattern. 

If you are not familiar with the term, a rising wedge is a technical chart pattern that often signals a possible reversal in price direction. It happens when the price is going up but the range between the highs and lows gets smaller, creating converging trend lines. The trend lines slope upward, with the upper line formed by the highs and the lower line by the lows. 

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However, a rising wedge often signals a bearish reversal for the asset even though the price is going up. 

#Dogwifhat $WIF could be forming a rising wedge! If the lower boundary at $2.50 holds, we could see a rebound to $3.10! pic.twitter.com/xg3sy3tyfo

— Ali (@ali_charts) October 17, 2024

Martinez is making a pretty bold prediction based on this pattern. He says that if the lower boundary of the wedge at $2.50 holds, the price of dogwifhat coin could rebound to $3.1. 

Bullish, but bearish

On top of that, if WIF keeps trading at this price, it could go up as high as $3.20 per coin after a possible correction. This raises an interesting question: while prices can rise within a wedge, the pattern suggests the probability of a painful downside breakout once support breaks.

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Should one indulge in trading a bearish pattern, even if it means a potential upward move before collapse?

While such a philosophical question remains pure rhetoric, more pragmatic traders focus on the price performance of the dogwifhat coin near the $2.50 support.