dogwifhat: How bulls are setting WIF up for a rally next cycle
WIF may become highly attractive to new buyers, especially as the market faces increased volatility.
- WIF bulls are eyeing the “dip,” signaling that $2 could be the market bottom.
- If this trend holds, a breakout to $2.40 might be next.
dogwifhat [WIF] bulls are navigating a tough path, with the price holding at $2.07, marking a 6% decline from the previous day’s close. Amid Bitcoin’s rocky October start, WIF’s outlook remains uncertain.
Yet, AMBCrypto has noted an intriguing trend on the daily price chart. Despite the volatility stemming from BTC’s retracement to $60K, WIF bulls seem ready to shake off weak hands and potentially break through the mid-July resistance of $2.40. If successful, this could pave the way for a bull rally. But first,
Flipping $2 into support is key
WIF last reached an ATH of $4.5851 about 180 days ago in late March. Since then, it has trended bearish, with bulls struggling to reclaim the $3 mark.
Over the past two months, WIF consolidated within the $1 range, with bulls making three attempts to break the $2 resistance, finally succeeding in late September by reaching $2.40.
On the daily chart, the three consecutive red candles coincided with BTC’s downward swing, retracing WIF back to $2. However, there may be more to the story than just dogwifhat following Bitcoin’s footsteps.
According to AMBCrypto, $2 has historically been a generational entry point for WIF. If renewed activity flips $2 into support, the next resistance might be around $2.40. If that level holds, a push toward $3 could be within reach.
WIF bulls are eyeing the “dip”
Historically, spot traders have targeted WIF’s bottom to prevent pullbacks. Therefore, to maintain the $2 support, bulls need to re-enter the accumulation phase.
At press time, a notable spike in net outflows suggests that bulls have begun withdrawing WIF, anticipating a rally to $3, as mentioned earlier.
If this trend holds for several consecutive days, it could confirm that the previous $2 resistance has flipped into support.
Realistic or not, here’s WIF’s market cap in BTC’s terms
In such a scenario, WIF may become highly attractive to new buyers, especially as the market faces increased volatility.
Thus, close monitoring of this situation is essential. If capital flows into WIF continue to rise, a rally to $2.40 could face little resistance, positioning dogwifhat as a preferred alternative to other meme and altcoins.
