Dogwifhat (WIF) is attempting to break out of its rising wedge pattern. The memecoin is trading at a two-month high, and its next target is to secure a 36% increase.
If successful, WIF could see a total increase of 55%, capturing the attention of investors looking for significant gains in the memecoin space.
Dogwifhat has negative correlation with Bitcoin
WIF currently has a negative correlation with Bitcoin, which is generally considered a bearish sign for altcoins. However, things are unfolding differently for Dogwifhat.
While Bitcoin remains under pressure, WIF is showing resilience and upward momentum. Should the price of Bitcoin fall further, WIF could indeed see further gains as it continues to capitalize on its unique position in the market.
Read more: What is Dogwifhat (WIF) cryptocurrency?
This negative correlation could give WIF an advantage, as Bitcoinâs volatility could create more opportunities for the memecoin to rise. Investors are noticing this decoupling from Bitcoinâs usual influence, which is helping WIF carve its own path amid a sea of ââaltcoins that are heavily affected by BTCâs price movements.
The macro momentum behind WIF is further reinforced by liquidation data, which shows that short position liquidations have reached a six-month high.
Correlation of WIF with Bitcoin. Source: TradingView
This suggests that traders who bet against the meme coin are being forced to close their positions, potentially generating buying pressure. As these short contracts are liquidated, the WIF price could benefit, adding fuel to its upward trajectory.
This wave of short liquidations indicates that traders were expecting WIF to fall, but the meme coinâs strength defied expectations. As a result, the altcoin could continue to see buying pressure, which could contribute to further price gains. This macro momentum, coupled with the negative correlation with Bitcoin, makes WIF an interesting asset to watch in the coming days.
WIF liquidations. Source: Coinglass
Price forecast
WIF is currently trading at $2.53, with an eye on securing the support level at $2.36. A bounce off this support would confirm the breakout from its rising wedge pattern, solidifying the bullish momentum that WIF has been building.
If WIF manages to successfully break out, it has the potential to post a 55% surge. Currently, the memecoin is 36% away from its next target of $3.43. Breaking through and converting the $2.75 resistance into support would be a key step in pushing WIF towards this target.
Read more: Solana Blockchain Memecoins That Are Promising for 2024
WIF Price Analysis. Source: TradingView
However, if WIF loses support at $2.36, the price could drop to $2.01. Such a decline would invalidate the bullish outlook and bring the meme coin back to its previous pattern. Consequently, this would limit its chances of achieving a 55% surge.
The article Dogwifhat (WIF) Defies Bitcoin Trends, Targets 55% High appeared first on BeInCrypto Brasil.
