Dogwifhat Nears Key Support—What Could Spark WIF’s Next Rally?

• Technical indicators and whale accumulation suggest WIF could rally if it confirms a bounce off key support levels.
• Tight price consolidation near trendline resistance signals a breakout, with social and market data supporting a potential recovery.

As highlighted in a recent CNF report, Dogwifhat showed a strong market pattern following its Coinbase listing and a key technical breakout on the Solana network. However, Dogwifhat (WIF) has fallen 35.95% from its all-time high, trading at $3.0673. Despite the drop, a bullish flag pattern on the daily chart hints at a potential price recovery.

Historically, such patterns signal a continuation of prior bullish trends, suggesting WIF could bounce back once this correction phase concludes. The token’s key support level, formed by the broken upper trendline, is crucial for sparking its next rally. Additionally, an oversold stochastic RSI further supports the likelihood of a rebound, as noted in a TradingView discussion:

WIF/USDT is showing promising signs as it nears a crucial trendline resistance zone. The price is tightly consolidating, forming an ideal setup for a potential breakout.

Whales Accumulate Amid Correction

Large holders of WIF, with wallets containing over 5 million tokens, have been accumulating during the price dip. This accumulation suggests confidence from institutional investors in WIF’s long-term potential.

On-chain data also shows a steady rise in social engagement for WIF since November, though mentions have slightly decreased over the past three days, indicating a temporary pause before renewed momentum.

What Could Spark WIF’s Next Rally?

WIF’s long-short ratio reflects traders’ optimism, with more leaning towards long positions. Combined with strong technical indicators and whale activity, the stage seems set for a potential reversal. Investors now await a confirmed bounce off key support levels to signal the start of the next upward trend.

As of today, according to CoinMarketCap, Dogwifhat (WIF) is trading at $3.20, with a 4.52% surge in the past day and a 3.74% decline over the past week.