The price of Dogwifhat (WIF), a Solana-based memecoin project, surged by 16% in one day, reaching a high of $2.34 on July 1. This is part of a prevailing rebound after WIF's price climbed 60% from its $1.47-lows a week ago.
The outlook for WIF in July remains bullish, fueled by the emergence of a rare bullish reversal technical pattern and increased excitement surrounding the Solana exchange-traded fund (ETF) application in the United States.
Dogwifhat's BARR bottom pattern hints at 25% gains
Notably, Dogwifhat has been painting a Bump-and-Run-Reversal (BARR) bottom pattern since the beginning of June. As of July 1, it had entered the pattern’s breakout phase, now about 25% below its primary target of around $2.81.
The BARR bottom pattern typically consists of three distinct phases: the lead-in phase, the bump phase, and the run phase. Notably, the Lead-in Phase is a prolonged bearish trend characterized by a series of lower highs and lower lows, forming a descending trendline.
A sharp decline occurs, diverging from the trendline established during the lead-in phase, called the Bump phase. Finally, the price starts to recover, breaking through the trendline established during the lead-in phase. This is called the Run phase.
A BARR bottom breakout typically pushes the price toward the level at a length equal to the maximum distance between the Lead-in phase trendline and the deepest Bump point. Applying the same rule of technical analysis, WIF's upside price target for July is around $2.81.
However, WIF's price faces stiff resistance from its 200-4H exponential moving average (200-4H EMA; the blue wave) at around $2.37. A pullback from this wave could see the bears pull the price down toward the 50-4H EMA at around $2.06.
According to veteran analyst Tom Bulkowski, BARR bottom patterns have a 76% success rate in meeting their upside targets.
Solana ETF news is turning bullish for memecoins
Dogwifhat’s ongoing recovery trend has gained significant momentum, particularly following 21Shares' application for a spot Solana ETF in the United States.
WIF’s price has rallied by over 22% since the filing of 21Shares’ S-1 application 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) have risen by similar proportions.
The potential approval of a Solana ETF may increase institutional investment and broader market adoption of Solana and its associated projects. This positive sentiment could further boost other Solana ecosystem tokens, increasing prices and help WIF achieve its BARR target of $2.81 in July.