Dogwifhat (WIF), a meme coin built on Solana, saw its price surge by 16% within a single day, peaking at $2.34 on July 1. This marks a significant rebound following a 60% increase from its recent low of $1.47 just a week earlier.
WIF/USDT Four-Hour Price Chart:
The outlook for WIF in July remains optimistic, driven by a rare bullish reversal pattern known as the Bump-and-Run Reversal (BARR) bottom, alongside growing excitement surrounding recent applications for Solana (SOL) exchange-traded funds (ETFs) in the United States.
Dogwifhat’s BARR bottom pattern suggests potential gains of up to 25%
Dogwifhat has notably formed a Bump-and-Run Reversal (BARR) bottom pattern since early June. As of July 1, it has entered the breakout phase of this pattern, positioning itself approximately 25% below its primary target of around $2.81.
The BARR bottom pattern typically unfolds across three distinct phases: the lead-in, bump, and run phases. Initially, the lead-in phase is characterized by a prolonged downward trend marked by lower highs and lower lows, forming a descending trendline.
During the bump phase, a sharp decline deviates from the established trendline of the lead-in phase. Finally, in the run phase, the price begins to recover, breaking through the lead-in phase’s trendline.
A breakout from a BARR bottom pattern typically propels the price upward by a distance equal to the maximum extent between the trendline of the lead-in phase and the lowest point of the bump. Applying this technical analysis rule, WIF’s projected price target for July stands around $2.81.
WIF/USDT Four-Hour Price Chart featuring BARR bottom setup:
However, WIF’s price is currently encountering strong resistance from its 200-4H exponential moving average (200-4H EMA), positioned near $2.37. A retreat from this level could potentially lead the price downward towards the 50-4H EMA, approximately at $2.06.
According to veteran analyst Tom Bulkowski, BARR bottom patterns boast a 76% success rate in achieving their upward targets.
Solana ETF developments bolster bullish sentiment for meme coins
Dogwifhat’s ongoing recovery has gained substantial momentum, particularly in the wake of 21Shares’ application for a spot SOL ETF in the United States. Since 21Shares filed its S-1 application with the United States Securities and Exchange Commission on June 28, WIF’s price has surged by more than 22%.
WIF/USD Four-Hour Price Chart:
Similar movements have been observed in other Solana-based meme coins such as Bonk, Book of Meme (MEME), and PopCat.
Solana mem coins’ hourly, daily, and weekly performances:
The potential approval of SOL ETFs could usher in institutional investments and wider market adoption of Solana and its associated projects. This positive sentiment might further elevate prices across the Solana ecosystem tokens, aiding WIF in reaching its July BARR target of $2.81.
This article is not intended as investment advice. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.