Trader Warns ‘Nobody is Ready’ for DogWifHat Reversal: WIF Price Breakout Ahead?

Over the past 24 hours, the WIF price has surged a significant 8.09%, standing out as a major beneficiary in a 1.86% uptick among meme coins. This growth signals a potential significant reversal, with multiple traders forecasting a surge.

Today’s growth pushes WIF out of its recent rut, now down just 2.04% since last Thursday – outperforming other notable meme coins over the same period.

Indeed, amidst this strong performance interest in WIF has found new life, with its trading volume peaking around $350 million over the past 24 hours.

The Reversal “Nobody is Ready” For

Some traders are anticipating a rebound for WIF, potentially pushing the price back up to $2.40, a level it hasn’t seen since July 30. This optimism stems from recent technical developments.

In a September 3rd X post, pseudonymous analyst Bluntz highlighted a “Perfect channel retest” on the WIF chart, suggesting that the asset may be poised for a significant move upward.

perfect channel retest on $wif.

nobody is ready for the V reversal thats about to happenhttps://t.co/zHX9WYRMOM pic.twitter.com/zfNKDI85an

— Bluntz (@Bluntz_Capital) September 3, 2024

A sentiment that seems to be echoed by other analysts, citing the development as grounds that WIF is “ready for its next leg up.”

And traders are starting to catch wind, WIF open interest (OI), the total number of WIF futures contracts that have yet to be settled or expire, jumping 14% to $$231.48 million in the past 24 hours, according to CoinGlass data.

A rise to $2.40 would represent a 50% increase from current prices. However, deeper analysis suggests that this could be just Stage 1 in a broader narrative pushing WIF 6x from current prices.

WIF Price Analysis – The Key Barriers to a Surge

However, a closer look at the WIF chart reveals that this reversal may not unfold right away, as WIF still faces obstacles.

Most notably, WIF has yet to affirm its break above resistance at $1.58 after a break above it yesterday. If it holds and flips this level to support, it would confirm a move higher, shedding doubt of any significant downside in the near term.

Stronger momentum indicators seem to support further upside. Most notably, WIF’s Chaikin Money Flow (CMF) has broken into positive territory after a long period of stagnation, currently sitting at +0.06. This indicates relieved selling pressure, setting the stage for a potential rally.

However, this has not been enough to influence the Relative Strength Index (RSI), which remains subdued below the neutral line, currently at 48, suggesting that WIF still retains its bearish lean.

Despite this, a recent crossover of the MACD line above the Signale line suggests that the Bulls are starting to lead the charge.

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