Solana meme coin Dogwifhat (WIF) prepares a wedge breakout run as it exceeds a triangle pattern in the 4-hour chart. Will this lead to a price jump to $2?
Altcoins are gaining momentum, with the Bitcoin price above $57K. Amid the increasing buying pressure, meme coins rank at the top of the charts. One such meme coin is WIF, ready for a domino effect of breakout rallies.
As buyers overcome the hurdles in the shorter timeframes, WIF shows readiness to outgrow the long-coming wedge.
WIF Ready to Outgrow Wedge Pattern
In the daily chart, WIF reveals a long-coming falling wedge pattern, starting with the correction phase in April 2024. Under the influence of a resistance trendline, WIF price faces multiple overhead reversals.
Amid the correction phase, WIF dropped to a low of $1.07 from the 52-week high of $4.8571, accounting for a downfall of 77% in five months. The meme coin is preparing a double-bottom reversal with the baseline at $1.39.
As the new bull cycle gains momentum, the meme coin WIF has surged 13.52% over the past two days. Currently, WIF is trading at $1.6824, with an intraday gain of 8.77%.
With the bullish reversal, the MACD and signal lines have returned to a positive alignment, resulting in a surge in bullish histograms. Meanwhile, the daily RSI line shows a bullish divergence in the double-bottom pattern. As a result, the momentum indicators are triggering a BUY signal for price action traders.
Triangle Breakout Run For WIF
The recovery rally has triggered another significant price action signal in the 4-hour chart, with WIF breaking out of a triangle formation and crossing above the 200-EMA.
The increasing bullish influence has led to a positive crossover of the 20 and 100 EMAs, with a crossover of the 50 and 100 EMAs likely to follow. Based on Fibonacci levels, the WIF breakout rally is expected to reach the 23.60% or 38.20% Fibonacci levels at $2.04 and $2.52, respectively.
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