- WIF saw its bullish momentum stalled at the $1.18-$1.2 resistance
- Liquidity around $1.2-$1.25 could drag WIF higher within a day or two
dogwifhat [WIF] has rallied to the highs of its 10-day-old range formation. At a time when Bitcoin [BTC] was hitting new ATHs, the altcoin market has only kept pace with the king of crypto. In fact, many tokens have posted double-digit percentage gains over the past week. However, it’s worth noting that the major memecoins are not running wild yet.
With this in mind, WIF’s challenge of the range highs might not see immediate success. The crypto market participants seem to be focused on Bitcoin, and the move past $1.2 might take more time.
dogwifhat bulls assail the $1.18 resistance once again
Source: WIF/USDT on TradingView
The short-term range formation (white) extended from $0.93 to $1.21, with the mid-range level at $1.07. At press time, the price had stalled just under the range highs for a couple of days.
This resistance level at $1.18 marked the lower high set in late January, when WIF was on a strong downtrend. Therefore, the level seemed to be an important long-term horizontal level. Combined with the range formation, it seemed likely that a move past $1.18-$1.21 and a retest as support would offer a good buying opportunity.
That buying opportunity is not here yet though. The OBV has trended higher over the past ten days, but seemed unable to breach the high from ten days ago. While the trading volume did climb slightly over the last 24 hours, it did not forecast a breakout at press time.
Source: Coinglass
The liquidation heatmap revealed that WIF may be likely to brush the range highs soon. There seemed to be a buildup of liquidity around the $1.2-$1.26 area. Since liquidity attracts price, and the magnetic zone was close to the market price, it may be highly probable that WIF would be pulled towards $1.26.
If the memecoin does break out past $1.26, a retest of the former resistance as support could be the beginning of the next rally.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
