WIF Jumps 20% in One Day

After a month-long downtrend, the price of memecoin trailblazer WIF has rejuvenated, recently riding a sharp one-day rally that has garnered gains for WIF buyers as high as 20%.

Is this the time to buy WIF, or is a price correction on the horizon?

Daily time frame analysis

WIFUSD - 1 Day Time Frame

WIF recently experienced a break in its structure with a weak bounce, resulting in new lows. Initially, this price action led to an uptrend on the 4-hour timeframe for a couple of days, touching the 21MA.

This trend is likely a capitulation leg, a lower high, which may halt WIF's downtrend if the lows show demand after the price tests them.

The best scenario would be for WIF to reclaim its previous support, either from the current position or after forming a higher low (HL), front-running the value area down marked by the Fixed Range Volume Profile.

Additionally, it is crucial for WIF to hold and form a bottom above the marked value area down. Otherwise, it could make a new low, potentially filling in the lightly filled blue gap previously marked.

Hourly time frame analysis

WIFUSD - 1 Hour Time Frame

On the lower timeframe, WIF is trading above the marked blue range. If WIF trades above this range for a few days, it would build value there and create the potential for more upside.

For a solid entry, it is important to wait for a range to form above the blue range and then confirm a breakout, targeting the marked dotted red line or slightly below it due to the market's weakness.

When to buy WIF?

WIF is likely to experience some downside or consolidation following recent climbs. To catch the next significant move, it is crucial to keep an eye out for revelations surrounding Dogwifhat and to monitor Bitcoin's behavior.

Given the high possibility of WIF returning to its local low, it is advisable to wait for bottom formation and for Dogwifhat to make higher lows (HLs) for less risky entries.