While the broader sentiment remains bullish in the medium term, recent short-term volatility and trend consolidations raise important questions about the sustainability of WIF’s current trajectory—and whether it can realistically challenge more established assets like Cardano (ADA) in market capitalization by year-end.

Complex Technical Patterns Point to Bullish Potential

A recent analysis by @mynameismoney4 on X outlined an intricate series of harmonic patterns on the 1-day WIF/USDT chart. These include formations such as Crab, Cypher, WhiteSwan, and BlackSwan—structures used by advanced technical analysts to forecast potential reversal zones.

One breakout of particular interest occurred from a symmetrical triangle formation labeled “SeaPony,” a term the analyst uses to describe key psychological Fibonacci confluence zones. The breakout has been validated by rising volume and a bullish divergence across multiple indicators.

Source:X

Momentum indicators such as the MACD show a widening bullish separation between the MACD and signal lines, while the RSI has breached the 70 level, indicating overbought conditions but also confirming strength.

Resistance is currently seen around the 1.380 USDT Fibonacci level, with higher targets mapped at 2.25–2.99 USDT, and extended projections reaching 4.00–4.88 USDT. The recent pattern of higher lows and higher highs suggests an intact uptrend, but the price will need to maintain above breakout levels with consistent volume to challenge upper targets.

Source:X

Further commentary from @CryptoJobs3 supports the scenario of continued upward momentum, suggesting a potential retest of the previous double-top resistance zone. This aligns with bullish structures on the chart and social media optimism around the token’s speculative potential. However, any waning in volume or appearance of bearish divergence would require a reassessment of the current momentum thesis.

Short-Term Pullback Underscores Market Volatility

Despite strong technical setups on higher time frames, Dogwifhat experienced a sharp retracement over the past 24 hours. WIF declined by 8.50%, currently trading at $1.13 after reaching a daily high of approximately $1.27.

The early spike in price suggested temporary bullish pressure, likely driven by speculation and reaction to technical breakouts. However, increased sell pressure emerged later in the day, indicating profit-taking or reduced buyer conviction.

Source:BraveNewCoin

According to Brave New Coin, the trading volume remained elevated at USDT 1.2 billion, reflecting high liquidity and market activity. This level of engagement points to strong interest in the asset, even as the price pulls back.

The decline may be interpreted as a short-term correction, especially given WIF’s historical volatility and rapid trend shifts. With 998.9 million tokens in circulation, supply dynamics also play a role in the sharp price movements, allowing for rapid inflow and outflow during speculative periods.

Brave New Coin’s enhanced platform now enables users to track trends over various timeframes, including 24-hour, 7-day, and 1-year views. This is particularly relevant in identifying whether such pullbacks are isolated or part of a broader trend cycle.

WIF currently ranks 93rd by market cap, trailing significantly behind Cardano, but recent spikes in trading volume and social engagement indicate that WIF remains on the radar of high-risk, high-reward traders.

Consolidation Phase May Precede Next Major Move

Additionally, short-term technicals, particularly on the 4-hour chart for WIF/USD on TradingView, show signs of consolidation following the recent rally. Price touched a local high at $1.173 and is now hovering near $1.136, with the Bollinger Bands narrowing, indicating decreasing volatility. The price is currently testing the 20-period SMA, which may serve as a dynamic support.

A break below $1.113 could expose WIF to further downside toward $0.976 or even $0.929, both identified as previous swing lows.

Source: TradingView

The Chaikin Money Flow (CMF) indicator is currently at +0.02, reflecting mild capital inflow. While still in positive territory, CMF levels are notably lower than previous peaks, hinting at potential distribution or reduced buying intensity. A drop in negative CMF readings could confirm a bearish shift, while sustained levels above zero may reinforce the ongoing consolidation as a pause before continuation.

For WIF to resume its bullish momentum, a decisive reclaim of the $1.173–$1.20 resistance zone with strong volume is required. Such a move could retest higher resistance near $1.30, which served as a ceiling during prior attempts.

A break above that would revalidate the medium-term uptrend, possibly reigniting discussions around WIF’s ability to close the gap with larger-cap tokens like Cardano. However, failure to hold key supports could slow that momentum considerably.

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Filed under: Bitcoin - @ May 25, 2025 3:22 am