- dogwifhat could make some serious gains if it breaches a nearby resistance zone.
- The high buying volume was an encouraging sign.
dogwifhat [WIF] saw a 37% move upward since Monday, the 23rd of September, to the time of writing. The meme coin also saw a breakout past the seven-week range formation whose high was at $1.98.
Since this is WIF’s first cycle, a long-term uptrend, and a 2021 Dogecoin [DOGE] -like run can not be ruled out. Here’s what investors and swing traders need to keep in mind.
The Fibonacci retracement levels could repulse the bulls
Source: WIF/USDT on TradingView
The daily market structure was firmly bullish and the OBV showed that the buying pressure was intense. The volume indicator’s move above the August highs and the earlier ones in July was a sign that this breakout could surpass the $2.9 level.
A set of Fibonacci retracement levels were plotted based on the downward impulse move in the latter half of July. The 78.6% retracement level was at $2.5, a level that served as support and was flipped to resistance in July.
A daily session close above this level would be the make-or-break event for bulls for this uptrend. A rejection did not appear likely, but a Bitcoin [BTC] retracement could force WIF to pull back as well.
The $2.5 zone is crucial in the short-term
Source: Hyblock
The past week’s liquidation heatmap data outlined the $2.45-$2.5 and the $1.8-$1.9 region as the most important short-term resistance and support zones. The liquidity at $2.12 was also notable.
Realistic or not, here’s WIF’s market cap in BTC’s terms
These magnetic zones could be visited before the price begins to trend in the opposite direction. The Fib levels and the liquidity pocket around $2.5 marked it as the prime resistance zone for dogwifhat bulls to overcome.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
