WIF Surges 17% as Bullish Wedge Breakout Looms

WIF has surged 17% in the last 24 hours, reaching $1.04 at press time, with analysts noting a potential breakout from a bullish wedge pattern on the 4-hour chart [1]. CryptoBull_360 highlighted that the price had broken through a key resistance zone at $1.02–$1.04 after rising from $0.9, setting a projected target of $1.3, a 23% increase from current levels [1]. This movement aligns with a broader technical setup suggesting a shift in momentum toward the upside, with the potential for sustained gains if the breakout is confirmed [1].

On-chain data shows that WIF’s active addresses have rebounded from early August lows, aligning with the recent price recovery from the $0.85–$0.90 range to the $1 level [1]. This increase in on-chain activity suggests renewed interest and participation among traders and investors. According to Glassnode, WIF's active addresses reached 4,745 on August 12, a sign that the market is regaining traction after a period of consolidation [1].

Trading volume has also surged by 28% to $1.8 billion, while open interest has increased by 13% to $421 million, indicating rising market participation as WIF approaches key resistance levels [1]. This increase in volume and open interest is a positive signal for the sustainability of the upward move, as it suggests that the gains are being supported by broader market activity rather than just speculative buying [1].

Resistance for WIF is currently clustered between $1.04 and $1.08, with further resistance expected around $1.25 if the breakout continues [1]. Support remains at $0.90–$0.93, a level where the price previously found a floor. Analysts are watching closely whether WIF can maintain above the breakout zone, as this would confirm the bullish momentum and suggest a continuation of the upward trend [1].

The Bollinger Bands on the daily chart indicate that WIF is currently above the middle band at $0.969, suggesting short-term strength. The upper band is near $1.112, which represents the next key resistance level. The Awesome Oscillator is slightly negative at -0.031, indicating that short-term consolidation could be in the cards before the next major move [1].

While the recent surge is primarily driven by technical factors, the broader crypto market has also been in a bullish phase, supported by favorable regulatory developments and increasing institutional interest [1]. WIF’s price action is in line with patterns often seen in the early stages of a breakout, where a well-defined consolidation pattern is pierced by strong upward momentum [1].

Analysts emphasize that while the 17% daily gain is significant, the key to maintaining the bullish outlook lies in whether WIF can hold the breakout level without a major retracement [1]. A successful close above the wedge could lead to a new phase of higher highs and potentially greater volatility, while a failure to hold could result in a retest of the wedge’s upper boundary [1].

Source: [1] WIF Eyes Breakout From Bullish Wedge After 17% Daily Surge (https://coinmarketcap.com/community/articles/689ce429f4257750660a907a/)