- dogwifhat could make serious gains if it breaks through a nearby resistance zone.
- The high purchasing volume was an encouraging sign.
dog hat [WIF] saw a 37% increase since Monday, September 23, to the time of writing. The meme coin also saw a breakout past its seven-week range formation, the high of which was $1.98.
Since this is the first cycle of WIF, a long-term uptrend, and a Dogecoin for 2021 [DOGE] -like run cannot be ruled out. Here’s what investors and swing traders should keep in mind.
The Fibonacci retracement levels could repel the bulls
Source: WIF/USDT on TradingView
The daily market structure was solidly bullish and the OBV showed that buying pressure was strong. The movement of the volume indicator above the August highs and the previous July highs was a sign that this breakout could surpass the $2.9 level.
Based on the downward momentum move in the second half of July, a series of Fibonacci retracement levels were plotted. The 78.6% retracement level was at $2.5, a level that served as support and turned into resistance in July.
A daily session close above this level would be the make-or-break event for bulls for this uptrend. A rejection didn’t seem likely, but a Bitcoin [BTC] retracement could also force WIF to retreat.
The $2.5 zone is crucial in the short term
Last week’s liquidation heat map data outlined the $2.45-$2.5 and $1.8-$1.9 regions as the key near-term resistance and support zones. The liquidity of $2.12 was also notable.
Realistic or not, here is the market cap of WIF in terms of BTC
These magnetic zones can be visited before the price starts to move in the opposite direction. The Fib levels and liquidity pocket around $2.5 marked this area as the key resistance zone for the dogwifhat bulls to overcome.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer