WIF Token Teeters on the Edge: Is a 45% Plunge Inevitable?
NOIDA (CoinChapter.com)—The WIF token faces potential downside risks as technical indicators suggest a possible retracement. Recent price action shows a rejection near key resistance levels, raising concerns about a pullback toward the pattern’s upper trendline.
If the WIF price slips back inside its ascending triangle formation, a deeper slide could ensue, potentially leading to extended bearish momentum.
WIF Price Risks 45% Drop
Like most of its peers, WIF enjoyed a strong bull run following the U.S. elections. Between Nov. 4 and Nov. 13, the Dogwifhat crypto coin’s price spiked by nearly 151% to reach $4.83 on Nov. 13, a hair’s breadth away from the token’s ATH near $4.86.
However, the price action has since reversed, dropping more than 30% to a daily low near $3.36 on Nov. 15. The $4 resistance level seems to have an abundance of bears defending it, which is why the token’s rally halted near it.
Dogwifhat price might be poised for a correction soon. Source: Tradingview
If the downtrend continues, WIF price could drop to the upper trendline of the ‘ascending triangle‘ pattern that the token broke out of recently, losing nearly 18% along the way.
Moreover, if the Dogwifhat token re-enters the pattern, the WIF price could test the token’s ascending trendline support, translating into a 45% drop, reaching nearly $1.99 before recovering.
Bulls would likely try to hold the token above the 0.382 FIB support near $2.6, with the next support level at 0.236 FIB level near the $2.13 price mark.
Unconfirmed Breakout Could Come Back To Haunt Bulls
Meanwhile, the WIF USD pair’s breakout from the ascending triangle pattern raised bulls’ hopes of an extended bull run.
The pattern occurs when a horizontal resistance line connects swing highs while an ascending trendline links higher swing lows. This setup suggests increasing buying pressure as the price approaches the resistance level.
WIF USD pair broke out of a bullish setup with a 136% upside target.
The significance of this pattern lies in the potential for a breakout. A surge in trading volume as the price nears the resistance level typically confirms the likelihood of a breakout above it.
The ascending triangle formation indicates that buyers are gaining strength, and a successful breakout could lead to further upward momentum for the WIF USD pair. Moreover, the technical setup provides a clear framework for assessing potential price movements in the near term.
In technical analysis, the pattern’s price target is calculated by measuring its height and projecting it from the breakout point. For the Dogwifhat token, this calculation suggests a price target near $8.8, a spike of 136% from the current level.
However, WIF price would need to confirm the breakout for the rally to continue, which seems unlikely given the current Dogwifhat price action.
The post Dogwifhat (WIF) Teeters on the Edge: Is a 45% Plunge Inevitable? appeared first on CoinChapter.
