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WIF’s liquidity pools mark $2.25 as key level for traders – All the details

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The 3-month liquidation heatmap highlighted the $2.25 zone as a strong magnetic zone and the next price target.

WIF's liquidity pools mark $2.25 as key level for traders - All the details

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  • WIF to target the local highs set earlier this month
  • A short-term dip to $1.7 could offer a buying opportunity

At press time, dogwifhat [WIF] remained in a downtrend on the daily chart. Despite the sustained losses for the memecoin, there seemed to be some potential for recovery though. In fact, technical analysis pointed to a bullish momentum divergence. Also, while the liquidation heatmaps outlined a price target above $2 for WIF, the buying pressure was lacking.

Can the bulls drive a recovery, or will it result in a failure to surpass its local highs?

WIF beginning to recover, or preparing for further losses?

WIF 1-day Chart

Source: WIF/USDT on TradingView

The latest lower high for WIF on the daily chart was set at $2.22 earlier this month. Since then, it has made a lower low and bounced to retest the $1.878 resistance level, maintaining its bearish trend.

The A/D indicator was also in decline, showing selling pressure was dominant. The Awesome Oscillator remained below the neutral line to indicate bearish momentum was prevalent. And yet, the AO formed a bullish divergence with the price.

This suggested that dogwifhat might be nearing the end of its downtrend since November. However, unless capital inflows pick up, traders must remain cautious.

WIF Liquidation Heatmap

Source: Coinalyze

The 3-month liquidation heatmap highlighted the $2.25 zone as a strong magnetic zone. The local highs from earlier in January have collected a sizeable number of liquidation levels, making it a target since price is attracted to liquidity.

Beyond $2.3, the $3 zone would be the next medium-term target.

WIF Liquidation Heatmap

Source: Coinalyze

The past month’s liquidation data also noted the importance of the $2.25 zone as a liquidity pool. To the south, the $1.7-level could be of interest to traders.


Realistic or not, here’s WIF’s market cap in BTC’s terms


It is possible that WIF sees a price dip to $1.7, before moving higher towards $2.25. A breakout beyond $2.25 did not appear likely as things stand due to the lack of buying pressure. This could change over the coming weeks.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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