After a 70% increase, the price of WIF declines and enters the “make-or-break” zone

Dogwifhat (WIF) shows signs of a potential bullish reversal after a sharp pullback. Analyst highlights key support at $0.30 and resistance at $0.44 as crucial levels for the next major price move.

The most recent increase in Dogwifhat (WIF) may have signaled the beginning of a wider trend, according to independent cryptocurrency chartist More Crypto Online (actual name Ben), who is well-known for his Elliott Wave breakdowns of altcoins and meme tokens. However, this is only possible if bulls are able to hold a fast-contracting support zone.

He reports that Whiff has recovered “nearly 100%” from its December wave-2 low into the first week of January, making it one of the stronger movers in the meme sector, in a recent video update prompted by community demands.

The price has already dropped by roughly 22% from the local high, which he describes as “well-deserved” following an unsuccessful attempt at a breakout.

The current structure is framed by the analyst as a potential five-wave impulse up on a micro level, followed by a typical wave-2 pullback. Although the market may have already gone beyond that leg, he acknowledges that the rise is “not the cleanest” and even states that he “would prefer actually one more high.”

He is keeping an eye on the following key Fibonacci retracement levels for this WIF price decline:
50%: ~$0.362; 61.8%: ~$0.335; 78.6%: ~$0.30
This band, according to him, is where a bullish reversal still makes sense. He contends that a persistent decline below about $0.30 would invalidate the existing wave-two scenario and make it “more probable that we are heading for a new low.”

He interprets the decline as a three-wave A-B-C structure for the time being, with an A-wave decline, a B-wave bounce, and a C-wave that “could still stretch a little lower.”

Trend-line Triggers for the Next Step of DogWifHat

He claims that a break above the internal B-wave high around $0.44 would be the “earliest indication that a low of sorts is in place.” Although he emphasizes that it is “way too early to confirm that,” that would indicate that the corrective C-wave has probably ended and open the door to a possible move into $1+ in a larger third wave.

Above that, he draws a green line to indicate a more structural barrier at about $0.745. He anticipates “quite some resistance” in this area if Whiff can ever get it, as heavy selling occurred there on October 10 during a “flash crash event.”

Bulls have already broken a crucial negative yellow trendline once, but they were unable to hold above it. Until then, the market is in a test period. Whether that breakout was the beginning of a real trend shift or just another unsuccessful meme-coin rise will be revealed by the current downturn.

Whiff is now a standard sentiment indicator for traders: if you maintain $0.30 and recover $0.44, the positive reversal tale will continue; if you lose $0.30 forcefully, the chart will move back toward new lows.