Dogwifhat [WIF] has been riding a wave of bullish sentiment, surging 114% from its mid-range support at $0.54. This remarkable rally comes amid a broader memecoin market upswing, with the sector posting a 6.8% gain in the 24 hours leading up to the time of writing. While initial projections suggested a 33% rally, the coin far surpassed expectations, breaking through previous resistance levels.
WIF Faces Potential Retracement as Overbought Conditions Emerge
The daily chart for WIF/USDT on TradingView reveals significant bullish momentum, with the On-Balance Volume (OBV) hitting levels not seen in three months. Despite this strong breakout, technical indicators suggest caution. The Relative Strength Index (RSI) stands at 82, signaling overbought conditions. Additionally, the $1.18 resistance level — a former lower high from December — has been challenged but not decisively broken. A pullback to the $1.05-$1.1 support zone could materialize if bearish momentum intensifies.
Short-Term Outlook: Further Gains or Correction?
On the 4-hour chart, a bearish divergence has formed, coinciding with WIF testing the $1.18 level. This led to a brief dip to $1.07, but the RSI reset to 66, indicating potential for further upside. According to Coinglass, a liquidation heatmap points to $1.21-$1.26 as a key resistance zone, potentially drawing WIF higher in the short term. However, a drop below $1.1 could open the door for a deeper correction toward the $0.94-$1 range.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Dogwifhat (WIF) Rockets 330% – Will Solana’s Hottest Meme Coin Hit $3 ?
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
