The WIF bulls are currently facing challenges, as the price of dogwifhat [WIF] remains steady at $2.07, indicating a 6% decrease from the previous day’s close. While the start of October has been tumultuous for Bitcoin, WIF’s future remains ambiguous.
Nonetheless, CryptoCrypto has identified an interesting development on the daily price chart. Despite the market turbulence caused by Bitcoin’s drop to $60K, WIF bulls appear poised to shake off weak investors and potentially surpass the mid-July resistance level of $2.40. This breakthrough could set the stage for a bullish trend, but there are crucial steps to take first.
Establishing $2 as a Resilient Support Level is Crucial
About 180 days ago in late March, WIF achieved an all-time high of $4.5851. Since then, the coin has been on a downward trend, with bulls struggling to regain the $3 threshold.
For the past couple of months, WIF has been consolidating around the $1 range, with bull investors making three attempts to breach the $2 barrier. Their efforts finally paid off in late September when the price reached $2.40.
On the daily chart, the three consecutive bearish candles were in sync with Bitcoin’s downturn, leading WIF back to $2. However, there could be more to this narrative than just dogwifhat mirroring Bitcoin’s movements.
Historically, $2 has served as a critical entry point for WIF. If the heightened activity successfully transforms $2 into a support level, the next obstacle might be at $2.40. A breach of that resistance could potentially propel WIF towards $3.
WIF Bulls are Watching for Opportunities in the Market Dip
Typically, traders in spot markets aim to prevent declines in WIF by targeting its bottom. Therefore, to sustain the $2 support, bulls must re-enter the accumulation phase.
Recent data indicates a noteworthy surge in net outflows, indicating that bulls are withdrawing WIF in anticipation of a surge to $3, as previously discussed.
If this pattern continues for a few consecutive days, it may confirm the transformation of the former $2 resistance into firm support.
In such circumstances, WIF could attract significant interest from new investors, especially amidst the growing market volatility.
Hence, vigilant monitoring of these developments is imperative. Should capital inflows into WIF persist, a move towards $2.40 could encounter minimal resistance, positioning dogwifhat as a favored option among meme coins and alternative cryptocurrencies.