Dogwifhat shows bullish divergence as analysts eye a breakout toward $4

Dogwifhat ($WIF) is showing signs of renewed strength as analysts highlight key technical patterns that could shape its next move.

According to market strategist Vespamatic – SMI 🇮🇩, the token has entered a strong accumulation phase, consolidating within a defined green support zone where buyers are defending against further downside.

This formation suggests that selling pressure is easing, often a precursor to a major breakout. Vespamatic projects $4 as the next logical upside target, reinforcing confidence that momentum-driven rallies could emerge if resistance levels are breached.

Complementing this outlook, analyst Quantum Ascend points to a bullish divergence forming on the daily chart, where the RSI is climbing despite lower price lows. Such divergence often signals weakening bearish momentum and potential trend reversals. With Dogwifhat near $0.82 and volume above $235 million, analysts see likely short-term rallies that could spark broader recovery.

Consolidation Within Key Support Zone

Dogwifhat has been trading within a defined accumulation range, according to recent technical analysis. Analyst Vespamatic – SMI 🇮🇩 noted that the token has been consolidating in a green support region where sellers appear to be losing momentum. Buyers have stepped in to defend the range, allowing price action to stabilize after a period of decline.

Such consolidation phases often precede a breakout when trading activity builds a base. The structure currently forming on WIF resembles past patterns where the token shifted from weakness into recovery. Analysts monitoring this activity suggest that the present conditions could set the foundation for a sustained upward move if resistance levels are cleared.

Analyst Target Toward $4

Analyst Vespamatic indicated that the next target could sit around the $4 level in the short to mid-term. A breakout from the current accumulation region may open the way for momentum-driven buying. The projection is reinforced by historical behavior in which extended periods of sideways trading have led to sharp rallies.

WIFUSD Chart | Source:x

If the token overcomes resistance within the accumulation zone, the $4 mark could become a focus for traders. Such a move would represent a strong recovery from current prices and potentially attract both retail participants and institutional traders looking for confirmation of renewed strength in the asset.

Bullish Divergence on Daily Chart

Additional analysis by Quantum Ascend (@quantum_ascend) shows a bullish divergence on the daily timeframe. While price action has continued to make lower lows, the Relative Strength Index (RSI) has instead registered higher lows. This divergence often signals that selling pressure is losing strength and that conditions are shifting toward a possible reversal.

WIFUSDT Chart | Source:x

The divergence indicates that momentum is turning upward even though the price remains under pressure. Analysts interpret this signal as favorable for a short-term rebound. Traders observing this setup may anticipate a relief rally that tests higher resistance zones as momentum aligns with strengthening market participation.

Current Market Activity and Outlook

At present, Dogwifhat trades around the $0.82 level, recording mild upward momentum over the past 24 hours. Price briefly touched $0.84 before encountering resistance, and the retracement left the token consolidating in a tight range between $0.81 and $0.83. Despite the setback, it remained up 1.56% on the day, showing resilience under current market conditions.

WIFUSD 24-Hr Chart | Source: BraveNewCoin

Trading volume exceeded $235 million within the same period, reflecting active engagement from market participants. The token holds a market capitalization of approximately $823 million, supported by a circulating supply close to one billion units. Analysts suggest that continued volume at these levels may keep the asset positioned for retests of the $0.84 resistance zone. On the downside, a break below $0.81 could expose the token to further correction.