The cryptocurrency market experienced a sharp rise on the day of the US election, with Bitcoin [BTC] reaching a new all-time high (ATH) amidst indications of a potential Trump victory. Memecoins saw significant gains, with dogwifhat [WIF] surging by 20% within a 24-hour period.
At present, there is a noticeable long shadow on the daily candlestick chart, hinting that the election-driven surge might encounter some consolidation. What lies ahead for one of the leading memecoins following the US election?
What’s Next for WIF?
On the price charts, WIF displayed a typical pullback pattern and retraced to the golden zone on the Fibonacci retracement tool (marked by the 50%-61.8% fib level in white). The recent rally of over 20% was initiated by the $1.2 – $2.0 support zone (white).
As some traders may take profits post-election, a possible pullback could see WIF dropping to $2.245 (38.6% Fib level) or back to the golden zone before potentially resuming its upward movement.
In such a scenario, sidelined bullish investors might consider re-entering the market at the aforementioned support levels.
Furthermore, a close above $2.5 could propel WIF towards October’s peak around $3, assuming Bitcoin retains its bullish momentum.
Whale Activity Surrounding WIF
The surge on election day appeared to be fueled by significant player activity. According to Hyblock, whales accumulated substantial positions in WIF on the 5th of November, as indicated by the Whale vs. Retail Delta metric.
This contrasted with the considerable reduction in holdings witnessed before the election, which caused a decline in WIF. If whale interest in the memecoin continues, it could further drive the rally.
Additionally, a notable liquidation of short positions contributed to the bullish sentiment. Within the last 12 hours leading up to the present moment, short positions worth $1.7 million (betting on a WIF price decrease) were closed out.
In summary, it seems that bears currently lack a significant market advantage, particularly in the short term, given the heightened excitement surrounding the election. Should this trend persist, any potential pullback in WIF’s price could represent an attractive buying opportunity should the uptrend endure.