- dogwifhat is likely to break the $3 resistance in the coming weeks.
- There could be a minor price dip soon, and bulls can re-enter at the lower timeframe support levels.
dogwifhat [WIF] stormed past the local resistance at $2.37. In doing so, it negated the idea that the memecoin might form a smaller range beneath the range formation from April. The recovering sentiment sets new bullish targets.
One of them is the $4 level, which the token has a good chance of reaching due to its momentum. However, the market could also see a minor retracement before the uptrend continues.
WIF might see a divergence soon
Source: WIF/USDT on TradingView
The 12-hour chart showed a firm bullish structure, and the RSI above 70 to show dominant bullish momentum. The RSI and the price were making higher highs. When the RSI forms a lower high while the price pushes higher, a bearish divergence would form.
Traders can watch out for this and act accordingly. To the north, the $2.92 resistance level might see prices fall lower for a brief period. The CMF was well above +0.05 to indicate hefty capital inflows.
The move past $2.37 and $2.5 is a sign of bullish intent. Traders can be bullishly biased and look for long entries for their swing positions around these support levels.
Futures data shows sentiment is healthy
Source: Coinalyze
The Open Interest was rising alongside the price to show speculators were willing to bet on sustained price gains. The funding rate was also rising to show longs were increasingly dominant.
Realistic or not, here’s WIF’s market cap in BTC’s terms
While this was good news in the short term, the spot CVD has been in decline. It was at odds with the volume information from the price action and could be an early warning that the momentum of dogwifhat would stall.
Overall, it remained likely that WIF might see a minor price drop this week. If that plays out, a retest of the $2.66 and $2.5 support levels can be used to enter long positions.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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