Is Dogwifhat (WIF) price headed for a 14% decline?
Dogwifhat (WIF) price has shown mixed signals, rising 22.43% over the past three months but declined 5.53% over the past week. The Ichimoku cloud on the WIF chart indicates a decision period, with the price hovering near the cloud and indicating a neutral market position.
Although the AMA lines are approaching a latent “death cross” formation, the ADX indicates that the current downtrend lacks strength. If the downtrend gains momentum, WIF could see further declines; However, a reversal can push him to key defensive levels.
YF Ichimoku Cloud shows mixed signals
The Ichimoku Cloud on the WIF chart shows that the price is approaching the cloud, indicating a decision period.
When prices are stored in the cloud, it usually represents a neutral level where neither buyer nor seller has control. The alternating colors of the clouds – red and green – reflect this mixed feeling.
Read more: How to Buy Solana Meme Coins: A Step-by-Step Guide
The leading span lines, Senkou Span A and Senkou Span B, provide an indication of future support and resistance. The thin parts of the cloud suggest that the price may rise if momentum increases. A move above the cloud may confirm a bullish trend, while a drop below may signal a bearish transition.
Dogwifhat ADX shows that the current downtrend is not that strong yet
WIF's ADX rose to 19.07 from 15 a few days ago, indicating a slight increase in trend strength.
However, an ADX below 20 typically indicates a weak or non-existent trend, which means that recent changes in the price of WIF have not been enough to establish a strong trend.
The ADX or Average Directional Index measures the strength of the trend without indicating its direction. Generally, an ADX above 25 indicates a strong trend, while values below 20 reflect a clear lack of trend momentum.
Currently, WIF is in a downtrend, but if the ADX is still below 20, it indicates that the downtrend does not have strong momentum and may be subject to reversal or volatility.
WIF Price Forecast: Death cross could trigger 14% correction.
The WIF EMA lines are currently showing a bearish setup, the price has settled below them and the short-term EMAs are on a “death cross” as they approach crossing below the long-term EMAs. This formation usually shows a strong downtrend, suggesting that selling pressure may increase if fully formed.
Read more: How to buy Dogwifhat (WIF) and other things you need to know
However, indicators such as ADX and Ichimoku Cloud show that the current downtrend may still be weak. If momentum reverses, WIF price may try to test resistance at $2.63, and possibly $2.80. That could lead to the price of SOL as it is one of the most important meme coins in the Solana ecosystem.
On the contrary, if the death cross completes and bearish conditions gain strength, WIF could test support at $2.19 and possibly lower to $1.96, representing a 14% decline.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
