The cryptocurrency, dogwifhat [WIF], witnessed a streak of five consecutive days of price increases as bullish momentum drove the prices higher. The recent surge in Bitcoin [BTC] crossing the $60k mark also contributed to the positive sentiment across the market.
While the memecoin has been on an upward trend in the short run, it is likely to encounter strong resistance around the $2 mark. Traders now face a decision on whether to capitalize on the bullish momentum or prepare for a potential downturn.
Insights from the Price Range Analysis
dogwifhat has remained within a defined price range since the second week of August, fluctuating between $1.39 and $1.98. Notably, the $1.685 level has consistently acted as a barrier for the past three weeks.
Recently, WIF bulls successfully pushed past this resistance, with the Chaikin Money Flow (CMF) surging above +0.05, indicating strong buying pressure. While this development could propel the memecoin towards the range’s upper limit, a breakout is not guaranteed.
A bullish crossover on the Awesome Oscillator reflected a shift in momentum on the daily chart. Despite this positive sign, traders should brace for a potential price rejection at the critical $2 level.
It is advisable to follow the current range dynamics and avoid anticipating a breakout. However, a daily close above $2 would signal a shift in sentiment among swing traders.
Observations from the Liquidation Heatmap
The liquidation heatmap revealed slightly different levels compared to the price action data. Notably, a significant accumulation of long liquidations was noted in the $1.22-$1.26 range, well below the recent range boundaries.
Furthermore, the $1.88 level emerged as a key short-term target where a potential price reversal might occur. Additionally, swing traders are eyeing profit-taking opportunities at the $2.09 and $2.06 levels as potential bullish targets.
Disclaimer: The views expressed are personal opinions and should not be interpreted as financial, investment, or trading advice.