Dogwifhat ($WIF), a Solana-based memecoin project, saw its price surge by 16% in one day, reaching $2.34 on 1 July.
This increase is part of a broader rebound, with $WIF’s price climbing 60% from its $1.47 low a week ago.
Dogwifhat’s recovery trend has mostly been bolstered by the recent news of 21Shares‘ application for a spot Solana exchange-traded fund (ETF) in the United States.
On 28 June, 21Shares filed an S-1 application with the US Securities and Exchange Commission (SEC), sparking increased interest and optimism in the Solana ecosystem.
Since the filing, $WIF’s price has rallied by over 22%, reflecting the positive market sentiment.
The prospect of Solana ETFs has created a ripple effect, enhancing the perceived value and stability of Solana-based assets.
If approved, these ETFs could attract a significant influx of capital from institutional investors who have been cautious about entering the cryptocurrency market due to regulatory uncertainties and market volatility.
This increased investment could provide a more stable and supportive environment for the growth of memecoins like Dogwifhat.
The outlook for $WIF in July remains positive, driven by a rare bullish reversal technical pattern and growing excitement over the applications for $SOL ETFs in the US.
What do the indicators say?
Since the beginning of June, Dogwifhat has been forming a bump-and-run reversal (BARR) bottom pattern. By 1 July, the token had entered the breakout phase of this pattern and is now approximately 25% below its primary target of around $2.81.
The BARR bottom pattern is typically composed of three phases: the lead-in phase, the bump phase, and the run phase.
The lead-in phase is marked by a prolonged bearish trend characterised by a series of lower highs and lower lows, forming a descending trendline.
This is followed by the bump phase, where a sharp decline occurs, diverging from the trendline established during the lead-in phase.
Finally, the price begins to recover in the run phase, breaking through the trendline from the lead-in phase.
A BARR bottom breakout typically propels the price to a level equal to the maximum distance between the lead-in phase trendline and the deepest bump point.
Applying this rule of technical analysis, $WIF’s upside price target for July is around $2.81.
However, it is important to note that $WIF’s price faces significant resistance from its 200-4H exponential moving average (200-4H EMA) at around $2.37.
Should the price pull back from this resistance level, it could fall toward the 50-4H EMA, which is around $2.06.
According to veteran analyst, Tom Bulkowski, BARR bottom patterns have a 76% success rate in reaching their upside targets, lending further credence to this bullish outlook.
SOL memecoins lead the rally
$WIF has not been the only coin enjoying a bullish momentum. Solana memecoins, like Bonk ($BONK) are now at the forefront of a broader cryptocurrency price rally.
According to CoinMarketCap, the token has seen substantial gains, up roughly 10% in the past 24 hours.
As of the latest trading data, Bonk was last seen trading in the $0.24 range. It has recovered 35% from last week’s lows as positive sentiment in the crypto markets grows.
The broader cryptocurrency market has also been on an upward trajectory, with Bitcoin ($BTC) up nearly 9% from its recent lows. While there hasn’t been a clear catalyst for this market-wide rebound, several factors may be contributing to the positive momentum.
One potential factor is the rising implied probability of a Trump election victory later this year, which some market participants believe could lead to more favourable regulatory conditions for cryptocurrencies.
Additionally, the latest weaker-than-expected US ISM Manufacturing numbers have appeared to aid market sentiment, suggesting that the Federal Reserve might pause or slow down interest rate hikes.
