Saad Ullah
The Solana-based memecoin WIF shows resilience amid correction, with a potential rally to $3.10 if the $2.50 support holds.
WIF Holds Steady Amid Correction
The Solana-based memecoin dogwifhat (WIF) is currently navigating a potential short-term correction while showing signs of resilience. Despite recent predictions of a drop to the $2 range, WIF has managed to stabilize around the $2.50 mark. The memecoin’s traders continue to buy every dip, keeping bullish sentiment alive. As a rising wedge pattern forms, WIF may see a potential rally in the upcoming bullish quarter.
If WIF maintains the lower boundary of its wedge at $2.50, it could rebound to $3.10, offering a possible 20% gain. However, breaking below this key level might send the price back to the $2 zone, as previously forecasted by analysts.
WIF Price Outlook: Key Levels to Watch
WIF recently bounced off its lower trendline and is now eyeing the upper resistance level. A sustained hold at $2.50 could lead to further price increases. However, if WIF breaks below $2.50 and confirms a retest, it may invalidate the current bullish outlook, potentially pushing the price toward the $2.20 or even $2.00 levels.
The $2.50 support aligns with the lower trendline of the rising wedge, making it a critical level for WIF’s short-term direction.
WIF Liquidation Levels Loom
At the time of writing, WIF was trading below $2.60, with approximately $675,000 worth of perpetual futures contracts at risk of liquidation at this level. If WIF's price climbs by just two more cents, liquidations could increase to $790,000, placing the $2.70 zone in focus. Price movements often chase liquidity, meaning WIF could push higher if this level is reached.
Conversely, a dip to the $2.40 zone may trigger liquidations worth $824,000, potentially sending the price down to $2.00. This would also represent a retest of a broken double-top pattern on WIF’s daily chart.
WIF Gains More Holders Amid Market Bounce
Despite short-term price uncertainty, WIF is gaining traction among traders. Over the past week, the number of WIF holders has increased steadily across all timeframes. There are now 189,350 WIF holders, with 56% of them holding more than $10 worth of WIF. This rise in holders, coupled with minimal price dips, indicates a positive market sentiment.
Memecoins like WIF rely heavily on community support, and the consistent increase in holders bodes well for its long-term potential. With the broader crypto market witnessing significant rebounds in Bitcoin, other memecoins, and AI tokens, WIF appears poised for future growth.
WIF’s Long-Term Potential Remains Intact
While WIF faces short-term challenges, its bullish potential remains intact. Memecoins continue to thrive in the current market, and WIF is no exception. A break above the critical $2.50 mark could lead to significant gains, possibly propelling the price toward the $3.10 target. Conversely, a break below could trigger corrections back to the $2 zone.
For investors looking to capitalize on long-term growth, dollar-cost averaging (DCA) around the current price level might be a strategic approach as WIF is well-positioned for future upside.
Saad Ullah
