WIF breaks key resistance after weeks of consolidation, setting up for a potential 14% upside.
Current support at $1.05 holds firm, while resistance at $1.17 remains critical for further gains.
Volume and price action align, indicating strong short-term momentum as traders eye $1.31 targets.
A new chart breakout from memecoin WIF (Dogwifhat) has drawn attention across the crypto trading community, as the asset gained over 10% in the last 24 hours. Trading at approximately $1.16 at the time of writing, WIF recently broke out of a descending resistance trendline that had kept the price range bound for weeks. The breakout is now fueling expectations for further upside, with traders pointing to a potential 14% increase in the near term if momentum sustains.
Technical Setup Suggests Continuation of Breakout
The chart pattern reveals a clean downtrend breakout, followed by a sharp move upward. This breakout is significant as it marks a reversal from the prolonged lower highs that had capped upward price attempts since early May. According to analyst WorldOfCharts1, WIF is expected to move upward with a short-term target around $1.31. This would represent a gain of about 14% from current levels, building on the nearly 50% rise from the bottom of the recent trend channel.
Source: (X)
Currently, WIF is trading just under its immediate resistance level of $1.17. If this barrier is breached convincingly, traders expect price discovery to continue toward the next resistance zone, which may emerge near previous highs around $1.35 to $1.40. On the downside, $1.05 remains a key support level. This range is likely to be tested should any pullback occur amid profit-taking or broader market weakness.
Broader Market Conditions Add Context
WIF’s recent performance comes amid increased volatility in the overall cryptocurrency market. Bitcoin’s recent consolidation above $110,000 has introduced a rotation narrative, where capital begins to flow into altcoins and speculative tokens. Historically, such phases lead to temporary outperformance of altcoins with high community engagement, which often includes meme-based projects like WIF.
Data shows a 10.6% daily increase in WIF’s dollar value and a 6.4% gain against Bitcoin. This indicates both rising demand and relative strength compared to broader market trends. The 24-hour price range between $1.05 and $1.17 suggests tight consolidation following the breakout, often considered a continuation signal by technical traders.
Investor Sentiment and Next Steps
Though speculative in nature, WIF’s breakout has been closely tracked due to its previous volatility. Analysts note that the volume and speed of the breakout resemble earlier moves that preceded 50%+ rallies. However, caution remains as overall market sentiment can shift quickly, especially for assets with smaller market caps and lower liquidity.
Moving forward, the price reaction near $1.17 will likely serve as a key indicator of short-term momentum. Whether WIF can establish this breakout as a base or fades under resistance may define its next direction.
