After an explosive rally, meme coin favorite Dogwifhat (WIF) is beginning to show signs of technical exhaustion. Price action has stalled beneath a cluster of major resistance levels, and the token has now entered a corrective phase, raising the prospect of a deeper pullback before any bullish continuation can occur.
Technical Breakdown: Rally Rejected at High-Timeframe Resistance
Dogwifhat recently failed to break above a high-timeframe resistance zone, which included a strong confluence of the value area high, point of control (POC), and the 0.618 Fibonacci retracement level. The failed breakout formed a swing failure pattern, often a precursor to deeper retracements.
Following the rejection, WIF has slipped below the POC the highest volume node in its recent range confirming a bearish shift in momentum. The drop through this key zone has flipped previous support into new resistance, weakening the bull case in the short term.
Bearish Targets: $1.87 and $1.67 in Focus
With downside pressure building, analysts are now watching for a potential drop toward the $1.87 level, which aligns with a prior swing low and a modest demand area. If that fails to hold, the next significant support lies in the $1.67 to $1.50 zone, which includes the value area low, a weekly structural support, and an untested order block that may serve as a bounce area.
Despite the bearish momentum, this correction does not invalidate the broader bullish trend. Instead, it could establish a higher low on the macro chart, clear out resting liquidity, and prepare the groundwork for a more sustainable rally.
Volume Divergence Hints at Local Top
Adding to the bearish outlook is a noticeable divergence between price and volume. WIF’s most recent push higher lacked significant buy-side volume often an early signal of trend reversal. When this kind of volume weakness coincides with rejection at critical resistance, it typically leads to short-term correction or consolidation.
Until WIF reclaims the resistance cluster around the POC and 0.618 Fib level, bullish momentum remains in question.
What to Watch Next
If bulls cannot swiftly recover the broken resistance, a move toward $1.87 appears likely, with deeper downside into the $1.67–$1.50 demand zone possible. These levels could provide fresh entry points for bullish traders, especially if volume returns and key support holds.
Ultimately, this pullback may prove healthy removing weaker hands, resetting momentum, and providing a stronger launchpad for Dogwifhat’s next leg up.
