Dogwifhat (WIF) has become a leader in the Solana ecosystem, having risen 50% in price over the past month. Investors have taken note of this surge, with WIF's value nearing the $3 mark.

However, technical indicators suggest that even with strengthened momentum, a pullback remains possible. So, let’s analyze whether WIF's price will rise or fall in the coming days.


Bearish signal appears:

On October 14, WIF approached $3, reaching $2.96. However, the resistance level at $2.82 has blocked this momentum for the first time since July. This stagnation has raised concerns that WIF may have reached a local peak, indicating bearish risks, as emphasized above.

A close look at the daily chart reveals a rising wedge pattern. This typical bearish formation occurs when two upward lines converge. Usually, this signals an upcoming downtrend. The local high at $2.96 suggests a challenging road ahead.

The Money Flow Index (MFI) has heightened concerns. This key indicator measures market momentum by assessing buying and selling pressure. Recently, WIF's MFI has dropped, approaching the neutral line.

What does the future hold for WIF?

The daily chart shows that WIF may struggle to break through $2.82. The token has been on a downward trend since July. On July 22, WIF reached $2.82 but faced significant resistance. By August 6, the price had dropped 55% to $1.25. Past performance has raised alarms for current investors. A significant drop may not be unavoidable. Market analysts predict a possible 20% pullback.

Fibonacci retracement levels provide insights into potential price movements. If WIF drops to the 50% retracement level, the price may stabilize around $2.08. However, if buyers maintain the support level at $2.33, WIF may rebound to $3.11.

Although the recent rebound of Dogwifhat has attracted attention, caution is essential. Investors must remain vigilant and prepare for potential volatility. Between resistance and bearish signals, WIF's future is in a delicate balance.

This article is for informational purposes only and does not constitute investment advice.