The price of Dogwifhat (WIF), a Solana-based Mimecoin project, has surged 16% in a single day, reaching a high of $2.34 on July 1. This is part of a rally that followed a 60% rise in the price of WIF from its low of $1.47 a week ago.
The July WIF outlook remains strong due to the emergence of a rare bullish reversal technical pattern and increased expectations surrounding the application of the Solana Exchange Traded Fund (ETF) in the US.
Dogwifhat’s BARR bottom pattern suggests a 25% upside.
In particular, Dogwifhat has been drawing a BARR (Bump-and-Run-Reversal) bottom pattern since early June. As of July 1, it has entered the breakout phase of the pattern and is currently about 25% below its primary target of around $2.81.
BARR bottom patterns generally consist of three distinct phases: These are the lead-in phase, the bump phase, and the run phase. In particular, the lead-in phase is a prolonged downward trend characterized by a series of lower highs and lower lows, forming a downward trend line.
There is a sharp decline from the trend line established in the lead-in phase, which is called the bump phase. Finally, the price starts to recover and breaks through the trend line established in the lead-in phase. This is called the run phase.
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A BARR bottom breakout usually pushes the price towards a level with a length equal to the maximum distance between the introductory trendline and the deepest bump point. Applying the same technical analysis rules, WIF’s July upside target is approximately $2.81.
However, the price of WIF is facing strong resistance at the 200-4H exponential moving average (200-4H EMA; blue wave) around $2.37. A pullback from this wave could bring the price down to the 50-4H EMA around $2.06.
According to veteran analyst Tom Bulkowski, the BARR bottom pattern has a 76% success rate in achieving an upside target.
Solana ETF news turns bullish for memecoin.
Dogwifhat’s continued recovery trend gained significant momentum, especially after 21Shares filed a spot application for the Solana ETF in the US.
WIF’s price has risen more than 22% since 21Shares’ S-1 filing with the U.S. Securities and Exchange Commission (SEC) on June 28.
Other Solana-based memecoins, including Bonk (BONK), Book of Meme (MEME), and PopCat (POPCAT), also rose at similar rates.
The potential approval of the Solana ETF could increase institutional investment and broader market adoption for Solana and related projects. This positive sentiment could further drive other Solana ecosystem tokens, driving up their prices and helping WIF achieve its BARR target of $2.81 in July.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.