As Dogwifhat’s price dipped 2.8% to $2.27 during Saturday’s low-volatility session, the meme coin continues to test a key resistance trendline. This falling wedge pattern has persisted since March, with WIF now just 8% away from a potential breakout that could end its six-month bearish phase.

The broader crypto market faced headwinds to start October, with geopolitical tensions between Iran and Israel contributing to Bitcoin dropping below $65,000. Dogwifhat saw a 25% pullback from $2.64 to $1.96 before regaining the $2 level.

WIF is now encountering resistance around the psychologically important $2.50 mark, coinciding with the upper trendline of the falling wedge. A successful breach above this level could accelerate bullish momentum, potentially driving an 88% rally towards targets of $4.08 and $4.86. Supporting this outlook, the 50-day and 100-day exponential moving averages are nearing a bullish crossover.

On-chain metrics paint an encouraging picture for WIF bulls. Open interest in Dogwifhat futures has surged 88% since mid-September, rising from $195.7 million to $368.2 million. This indicates growing trader participation and the potential for significant price moves ahead. Additionally, WIF’s weighted funding rate turned positive at 0.0062% on Saturday, suggesting long traders are willing to pay a premium in anticipation of further upside.

While the technical setup appears favorable for a trend reversal, traders should remain cautious. A rejection at the wedge resistance could prolong WIF’s correction. As always, proper risk management is crucial when trading volatile crypto assets.