- WIF bulls have held the $0.81 demand zone well, but failed to spark a rally
- Clues from the liquidation heatmap indicated a potential reversal from the $1-region
dogwifhat [WIF] retested its former range high as support earlier in June. The most recent retest yielded a positive price reaction for the memecoin. And yet, despite the 26% move higher in two days, WIF bulls still face resistance at the previous week’s high.
WIF heading for a bearish reversal soon?
Source: WIF/USDT on TradingView
The 1-day chart signaled a bearish structure for dogwifhat. After testing the $1.18 resistance in mid-May, WIF set a higher low at $0.93 four days later, before bouncing higher to test $1.18 once again.
The second attempt was met with failure, and the rejection forced the price below the $0.93-mark. This shifted the structure bearishly on 31 March. A few hours before the time of writing, WIF attempted to rally beyond $1, but could not succeed.
The CMF on the daily chart was at -0.17, signaling heavy capital outflows. The MACD was near the zero line and on the verge of forming a bearish crossover.
Source: WIF/USDT on TradingView
The 4-hour chart revealed a CMF at +0.06, following the price bounce from the local low at $0.8. The brief move beyond $1.04 suggested a structure shift, but it was more likely to be followed by a reversal.
We had a brief dogwifhat price peek above the $1.04-level, followed by a bearish engulfing candle on the H4 chart – A sign of a bearish reversal. The CMF’s drop below +0.05 would be a clue that buying pressure has waned.
The bearish crossover on the MACD could also confirm the momentum shift. As things stand, a sustained WIF rally might need Bitcoin [BTC] to jump higher. Until then, traders can expect a reversal towards $0.8.
The 2-week liquidation heatmap showed two magnetic zones of importance. The one further from the market price was just below $0.8, the target of the anticipated bearish reversal. Another liquidity pocket at $1.08 could beckon WIF to it.
If the short-term demand and speculative interest ramp up, a breakout past the psychological $1 resistance could be sustained. This would become more likely if Bitcoin can see gains in the short term. Else, swing traders can wait for a dip to $0.8 to go long.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
