WIF Jumps 15% Amid Solana ETF Hype
01 Jul, 2024 ● Vijesti o kovanicama
The price of Dogwifhat (WIF), a memecoin project based on Solana, surged by 16% in one day, reaching $2.34 on July 1.
This increase is part of an ongoing rebound, with WIF’s price climbing 60% from its low of $1.47 a week ago.
The outlook for WIF in July is bullish, driven by the emergence of a rare bullish reversal technical pattern and growing excitement about recent applications for SOL exchange-traded funds (ETFs) in the United States.
Notably, Dogwifhat has been forming a bump-and-run reversal (BARR) bottom pattern since early June.
As of July 1, it entered the breakout phase of this pattern, now about 25% below its primary target of around $2.81.
The BARR bottom pattern typically consists of three distinct phases: the lead-in phase, the bump phase, and the run phase.
The lead-in phase is characterized by a prolonged bearish trend with a series of lower highs and lower lows, forming a descending trendline.
A sharp decline, called the bump phase, diverges from the lead-in trendline. Finally, the price begins to recover, breaking through the lead-in phase trendline, marking the run phase.
A BARR bottom breakout usually drives the price toward a level equal to the maximum distance between the lead-in phase trendline and the deepest bump point.
According to this technical analysis rule, WIF’s upside price target for July is around $2.81.
However, WIF’s price faces strong resistance at its 200-4H exponential moving average (200-4H EMA; the blue wave) around $2.37.
A pullback from this wave could see the bears push the price down toward the 50-4H EMA at approximately $2.06.
Veteran analyst Tom Bulkowski notes that BARR bottom patterns have a 76% success rate in reaching their upside targets.
Dogwifhat’s ongoing recovery trend has gained significant momentum, particularly after 21Shares filed for a spot Solana ETF in the United States.
WIF’s price has rallied over 22% since 21Shares submitted its S-1 application to the United States Securities and Exchange Commission on June 28.
Other Solana-based memecoins, including Bonk, Book of Meme (MEME), and PopCat, have also seen similar increases.
If SOL ETFs are approved, it could lead to increased institutional investment and broader market adoption of Solana and its related projects. This positive sentiment could further boost other Solana ecosystem tokens, potentially helping WIF reach its BARR target of $2.81 in July.
Sources:
https://cointelegraph.com/news/dogwifhat-wif-price-16-solana-etf-hype
