Dogwifhat (WIF) price is on the verge of a potential breakout, with price action suggesting it could surpass the $3 mark. Today, WIF’s price has increased by 13%, making it one of the best-performing cryptos in the last 24 hours.
As traders closely monitor its movements, indicators hint at a sustained upward trajectory. This analysis explores the technical patterns supporting this bullish outlook and the key levels to watch.
At press time, WIF’s price stands at $2.68. Beyond its price increase, the meme coin has seen a notable surge in volume. According to Santiment, Dogwifhat's trading volume has reached $719.31 million in the last 24 hours, signaling rising interest in the token as it continues its two-week comeback.
Typically, a rising price with falling volume is seen as a bearish signal, as it suggests weak liquidity behind the trend. However, WIF’s increasing price, coupled with its rising volume, strengthens its current uptrend. For the rally to continue, trading volume needs to keep climbing. If this momentum holds, WIF could push toward $3 or beyond.
Furthermore, the Weighted Sentiment around WIF, which was previously in the negative zone, has jumped to positive territory. Weighted Sentiment shows the level of positive or negative remarks about a cryptocurrency online. When the reading rises, it indicates that there are more positive comments on social media than negative ones. With WIF’s Weighted Sentiment currently positive, this implies that demand for the token could increase, potentially driving the price higher.
Based on the daily chart, WIF’s price is trading well above the Ichimoku Cloud, which is a collection of indicators showing support, resistance, and spot trends. Typically, when the price is below the cloud, the trend is bearish. However, at press time, the cloud is below WIF’s price, suggesting a bullish trend for the meme coin. Should this remain the same, the meme coin’s value could rise above the $2.82 resistance, possibly climbing to $3.22 in the short term.
However, WIF’s price might retrace if it fails to breach the overhead resistance. In that scenario, the meme coin could drop to $2.30.
