Dogwifhat (WIF) traded within a tightening ascending triangle, repeatedly testing resistance near $2.70. Prices oscillated around the 2024 support line at $2.55, which needed to hold to confirm bullish momentum.
Analyst Investing Haven noted that the pattern pointed to a potential upside breakout, especially as the price consistently closed above the critical $2.55 level over eight days.
A successful breach above $2.70 could lead to testing higher price targets, as indicated by the 2024 upside potential box extending towards $10.
The aforementioned breakout, if it held, would set a strong bullish trajectory for WIF, aligning gains and attracting further buying interest. The price action suggested that if WIF maintained above the $2.55 and $2.70 levels, further appreciations were likely.
This would confirm the bullish outlook and potentially drive prices toward new highs as predicted.
Can WIF Hold Above The 100 EMA
Additionally, WIF crossed the 100 EMA on the hourly chart, indicating a potential shift in momentum. This move followed a period of volatility where WIF’s price tested both higher and lower bounds. The cross happened amid fluctuating trading volumes, suggesting cautious interest from traders.
Typically, crossing above a significant moving average like the 100 EMA signals bullish intent, which could attract more buyers. If this trend holds, WIF might stay above the $2.55 level, confirming the prediction.
The support at $2.27 remains crucial. Holding it could bolster the upward movement. However, failure to maintain this level might see WIF test further supports near $1.87. The current setup positions WIF for potential gains if the market sentiment remains positive.
High Liquidity Zones at Risk
WIF/USDT liquidation levels over a 24-hour period show significant fluctuations marking distinct patterns in liquidation risks.
The liquidation heatmap highlighted areas where liquidations were likely, with denser lines indicating higher potential for liquidation due to leveraged positions.
Price drops aligned closely with high liquidity zones, suggesting high level activities, potentially aiming to capitalize on short-term volatility.
The $2.55 liquidation zone indicated traders set their stops around these areas to mitigate risks.
Notably, as price approached the $2.6 level, it showed intense activity, implying it was a crucial psychological barrier. Whenever the price neared this level, it faced resistance or found support, indicating a tug-of-war between buyers and sellers.
Zones above the $2.6 zone had fewer liquidation points, suggesting less trading activity or stronger positions that were not easily liquidated. This could imply that if WIF stays above $2.55, there might not be significant resistance until the next high-liquidity area.
Overall, these liquidation levels could strongly influence future price movements for WIF. As the price approaches these high-liquidity zones, there could be substantial price volatility due to traders attempting to defend their positions or capitalize on price movements.
