Dogwifhat (WIF) finds itself at a critical juncture, with its price action still trapped within a symmetrical triangle pattern. This bearish pattern indicates that a major price breakout could be imminent. Kwame Nkosi, a veteran blockchain analyst, joins us to explore what could play out. He provides timely, actionable advice to help you position yourself for a new bullish breakout or a bearish breakdown.

Understanding the Symmetrical Triangle

The symmetrical triangle is a technical chart pattern defined by converging bullish and bearish trendlines. It marks a time of balance in the market where no single entity, either buyers or sellers, have overall strength. Our take Kwame Nkosi WIF is still in a growth or consolidation phase. This stage looks like the fractal pattern he spotted in mid-June, making this triangle that much more critical. Price hit a high of nearly $0.92 before pulling back to around $0.86, showcasing the extreme unpredictability within one of these patterns.

As it stands here, the price action indicates a potential short-term move to re-test resistance in the area of $1.05. A successful breach of this magnitude would be the first step toward confirming the resumption of a bullish trend. WIF is still stuck in limbo until a safe breakout in either direction. Traders have to be equally ready for moves in either direction.

Bullish Breakout Scenario

If WIF manages to break out of the upper trendline of the symmetrical triangle, this may lead to a significant bullish price explosion. Kwame Nkosi sees a dozen candidates as takeover targets in a favorable deal.

  • Initial Target: A realistic target of $1.30, as the coin is moving towards this resistance level.
  • Near-Term Targets: Traders can consider taking partial profits at $1.01 and $1.14 to secure gains.
  • Mid-Range Targets: If the breakout is confirmed, an objective of $1.90 is within reach.
  • End-of-Year Targets: Should the bullish momentum sustain, WIF could potentially reach $1.50 to $1.60 by the end of the year.
  • Optimistic Targets: In more optimistic scenarios, WIF could even reach between $4 and $10.

Kwame Nkosi, Capital Markets Technologist & Analyst at ReadTheTicker.com tells us that a push back to $1.4 is highly probable if the bullish momentum continues. He gives a 60% chance to the $0.005 target given the current trajectory. Plus, he admits that the crypto market is volatile by nature.

Bearish Breakdown Scenario

If WIF slices through the lower trendline of the symmetrical triangle, a bearish case might start playing out.

  • Invalidation Point: A drop below $0.76 would invalidate the bullish outlook, signaling a potential downward trend.
  • Initial Target: If a breakdown occurs, WIF may initially target the zone between $0.65 and $0.55.
  • Potential Decline: A decline of approximately 17% from current levels is possible if WIF fails to hold its current structure.
  • Critical Support: Failure to defend the current level (around $1.00) could shift attention to the sub-$0.96 region.

Risk Management Strategies

With WIF’s price action shrouded in uncertainty, trader Kwame Nkosi recommends the use of strong risk management techniques to traders. He outlines several approaches:

  • Risk Avoidance: Traders who are uncomfortable with the potential risks associated with the triangle pattern can choose to avoid trading WIF altogether.
  • Risk Transfer: Hedging positions or using stop-loss orders can transfer some of the risk to others.
  • Risk Tolerance: Traders who believe the potential rewards outweigh the potential risks can choose to accept the risk and tolerate it.
  • Strategic Experimentation and Feedback Assessment: Experimenting with different trading strategies and assessing the market's feedback can help traders adjust their risk management approach.

Traders can avoid falling into the WIF triangle trap by discussing various possibilities before entering a trade. If they’re using the right risk management methods, they can take advantage of explosive moves up or down.