- dogwifhat has rallied 114% in under a week.
- The range breakout and heavy demand signaled the token could go even higher.
dogwifhat [WIF] was sailing higher on the back of heavy demand. The memecoin market was in a bullish frenzy, up 6.8% in the 24 hours preceding the time of writing.
In a report a week ago, it was noted that WIF could rally 33% from the mid-range level to the range highs.
These expectations were met, but turned out to be paltry compared to what ensued. dogwifhat has rallied 114% from the mid-range support at $0.54.
Technical analysis showed that demand has not slowed down, but a minor pullback was possible.
WIF reaches a checkpoint that might cause a retracement
Source: WIF/USDT on TradingView
The daily chart showed a strong uptrend on the OBV that beat the levels made in the past three months. This was accompanied by a strong WIF breakout beyond the range high. It was a sign of intent from the buyers, and they were not yet done.
The downtrend from December had made many lower highs, with one of the more recent ones being the $1.18 level. This level was challenged, and at press time, a move further higher was possible.
The RSI was at 82 to reflect overbought conditions, but no bearish divergence had formed on the daily chart.
Source: WIF/USDT on TradingView
The 4-hour chart shows a bearish divergence that formed, at the time of writing, when the price tested $1.18. This saw a minor dip to $1.07.
The RSI also reset to 66 at press time, meaning the momentum was strongly bullish, but there was room for upward expansion.
The OBV had also slowly ticked higher over the past three days. Together, the 4-hour timeframe’s clues showed that the price dip might have ended.
If WIF fell below $1.1 again, it might dip as far as the $0.94-$1 support zone.
Source: Coinglass
The 2-week liquidation heatmap showed that the $1.21 region was a magnetic zone that could pull dogwifhat higher.
Its proximity to the market price meant a move higher to $1.21-$1.26 was the more likely short-term outcome. A price dip could see WIF fall to $1.05, or as low as $1.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion