- WIF investors have been sitting pretty so far, but this might change
Key psychological level could determine whether WIF resumes its uptrend or crashes
Over the past week, the memecoin Dogecoin (WIF) has fluctuated between $3.2 and $4.1. Despite a bearish trend in the short term, the long-term perspective stayed optimistic.
Based on AMBCrypto’s assessment in simpler terms, the market’s bulls may experience some setbacks. However, there has been notable buying activity. Therefore, it will be intriguing to observe whether the bulls manage to spark a new upward trend.
Market structure maintains a bullish bias
On the 12-hour chart, WIF displayed successive lower highs, with the latest one identified by an orange marker at $3.189. This indicates that WIF follows a bullish trend on the 12-hour timeframe. A price drop below this level might signal a switch to a bearish trend.
A drop in the RSI below the 50-mark served as a preliminary indication, implying that downward pressure might grow stronger. Consequently, there’s a possibility of the prices dipping beneath the previously mentioned trough.
While the opposition has seen an uptrend in the OBV over the last fortnight, this suggests substantial buying activity despite the $4.1 resistance level remaining unbroken. As a result, investors should hold onto their optimistic long-term perspectives.
Market bulls could face pain in the near term
An analysis of the liquidation heatmap brought attention to the $3 range as a significant zone for liquidity, specifically the $2.89 to $3.14 sub-range. Should prices reach these levels, substantial sell-offs are expected to occur, potentially leading to a chain reaction of further liquidations if the price falls below $3.
Realistic or not, here’s WIF’s market cap in BTC’s terms
Although the magnetic zone worth $3 exhibits strength, it may momentarily weaken and even reverse. It’s essential for bulls to anticipate a favorable response if the current short-term downtrend encounters resistance at this point. If not, investors should prepare for potential further declines towards $2.5 and $1.85 levels.
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2024-04-10 17:11