The meme coin world has been buzzing with the impressive performance of Dogwifhat (WIF). Since Monday, September 23rd, WIF has surged by a remarkable 37%, breaking out of a seven-week range formation and reaching a new high of $1.98.
Given that this is WIF’s first major cycle, investors and swing traders are eagerly speculating about its potential for a long-term uptrend, reminiscent of Dogecoin’s 2021 rally.
Fibonacci Retracement Levels: A Key Indicator
While the daily market structure is firmly bullish and the On-Balance Volume (OBV) indicates strong buying pressure, it’s essential to consider Fibonacci retracement levels. A set of these levels, plotted based on July’s downward impulse move, reveals that the 78.6% retracement level at $2.5 could serve as a crucial resistance zone.
A daily session close above this level would be a significant bullish signal, suggesting that WIF could continue its upward momentum and potentially surpass the $2.9 level. However, a Bitcoin (BTC) retracement could force WIF to pull back, even if a rejection from the $2.5 zone seems unlikely.
Short-Term Resistance and Support Zones
The liquidation heatmap data highlights several short-term resistance and support zones:
- Resistance: $2.45-$2.5
- Support: $1.8-$1.9
- Liquidity Pocket: $2.12
These magnetic zones could attract price action before WIF’s trend changes. The Fib levels and the liquidity pocket around $2.5 make it a particularly important resistance zone for bulls to overcome.
Dogwifhat’s recent surge has generated significant excitement in the meme coin market. While the bullish outlook is promising, it’s crucial to remain cautious and monitor key indicators like Fibonacci retracement levels and market sentiment. A successful break above the $2.5 resistance zone could pave the way for a more extended uptrend, potentially resembling Dogecoin’s 2021 rally. However, investors should be prepared for potential pullbacks, especially in response to broader market movements.
Also Read: Dog-Themed Tokens Take Center Stage As WIF, SHIB, and PEPE Fuel Altcoin Rally
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.
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