Solana memecoin dogwifhat battles correction: Is a move to $3.10 likely?

• dogwifhat seems to be forming a rising wedge pattern.
• WIF holders count continue to see positive change.

dogwifhat [WIF], a Solana-based memecoin, is currently showing signs of resilience as it battles a potential short-term correction. After recent AMBCrypto analysis hinted at a possible drop to the $2 zone, WIF seems to be holding steady around the $2.50 mark.

This comes as WIF traders continue to buy every dip, reigniting bullish sentiment. With a rising wedge pattern forming, there is potential for a rally, especially in this bullish quarter.

If WIF can maintain the lower boundary of its wedge at $2.50, it could see a rebound to $3.10, offering potential gains of up to 20%. However, a break below this level could lead to a retest of the $2 zone, as previously highlighted.

Source: TradingView

WIF has bounced off its lower trendline and moved toward the upper resistance. If the $2.50 level holds, it could propel the price higher.

But a break below $2.50, confirmed with a retest, might invalidate the bullish outlook and push WIF toward the $2.20 or $2.00 zones.

The $2.50 mark coincides with the lower trendline of the rising wedge, making it a critical level for WIF’s near-term performance.

Liquidation heatmap

As of press time, dogwifhat was trading below $2.60, with $675,000 worth of perpetual futures contracts in play for liquidations at this level.

If the price moves just two cents higher, liquidations could rise to $790,000, making the $2.70 zone a potential target. Price movements tend to follow high liquidity areas, so this could push WIF higher.

Source: Coinglass

On the downside, a move to the $2.40 zone could trigger liquidations worth $824,000, potentially pushing the price further down to $2.00. This would also represent a retest of a broken double top pattern on the daily timeframe.

WIF holders rise as broader market bounces

Despite the short-term uncertainty, traders have started accumulating WIF, signaling a potential bullish shift. Over the past week, data shows growth in the number of WIF holders across all timeframes.

Currently, there are 189,350 WIF holders, with 56% of them holding more than $10 worth of WIF. The consistent growth in holders, coupled with minimal dips, indicates that market sentiment remains positive.

As memecoins are largely driven by community support, this bodes well for WIF’s long-term prospects. Additionally, the broader market has seen significant bounces in Bitcoin, meme coins, and AI tokens, which adds to WIF’s potential for future gains.

Source: HolderScan

With memecoins continuing to thrive, WIF appears to be a solid long-term bet. For investors looking to capitalize on potential future growth, DCAing around the current price level could be a strategic move, as WIF is well-positioned for further upside.

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While dogwifhat faces short-term challenges, its bullish potential remains intact. A break above $2.50 could lead to significant gains, while a break below could trigger further corrections.

However, the growing community support and increasing number of holders suggest that WIF’s long-term outlook is promising.