Summary:
– Dogwifhat has developed a classic cup and handle formation, hinting at a potential breakout.
– Analysts identify possible breakout targets for WIF at $1.75, $2.20, $2.85, and $3.70, assuming the pattern holds.
– Increased whale purchases and rising Open Interest are driving bullish sentiment as the price climbs past the $1.20 resistance.
Pattern Indicates Possible Trend Reversal
Dogwifhat (WIF) has approached a significant level on the daily chart after forming a cup and handle pattern. This pattern began taking shape in March with a rounded base and progressed into a sideways range by July, with the price now hovering above the $1.20 to $1.25 neckline.
Currently, WIF is trading at $1.23, marking an 11% rise over the past week. Sustaining this level could confirm a breakout, supported by the 100-day simple moving average at approximately $0.84, which has helped establish the pattern’s structure in recent weeks.
Key Levels to Monitor
The initial support level appears near $1.00, with the $0.84 level aligning with the moving average. A more significant pullback could see the price return to $0.70, a previous consolidation floor.
Should the upward momentum persist, the targets to watch include $1.75, $2.20, $2.85, and $3.70. These figures are based on prior price reactions and the depth of the cup shape. Analyst Jonathan Carter stated, “If this pattern holds, we might witness the price advancing toward $1.75, $2.20, $2.85, and $3.70.”
Trading Dynamics and Indicators
The Relative Strength Index (RSI) is nearing 70, indicating robust demand, though it may also suggest a potential pause. The volume profile shows a lighter zone beyond $1.30, which could facilitate quicker price movements if the breakout continues.
Open Interest in WIF futures has risen to $660 million, as reported by CoinGlass, reflecting an 11.5% increase from the previous week. Increased futures interest typically signals growing capital inflows from both sides of the market.
A recent acquisition by WIFStrategy has added to the momentum. On July 13, the firm purchased 500,000 WIF tokens, causing a 30% price surge to $1.30 before settling around $1.22. This move has lifted WIF above its previous range, where it remains as of now.
The original article “Dogwifhat (WIF) Set for Liftoff: Is $3.7 in Play?” was first published on CryptoPotato.
