Dogwifhat (WIF) has recently demonstrated significant bullish momentum, as its price surged 19% to break through the $1.5 critical resistance level. The breakout above this key resistance suggests increasing buying pressure for the cryptocurrency and opens up new possibilities for further upward movement.
As WIF maintains its momentum above the $1.5 resistance mark, the question is whether the bulls can continue driving the price higher toward the next resistance level at $2.2, or if a pullback is imminent.
This article aims to inform the audience about the significant price movement of Dogwifhat, provide a detailed technical analysis of the breakout above the $1.5 resistance level, and assess market sentiment along with potential future price directions including key levels to watch.
WIF was trading at around $1.69 and has increased by over 19% with a market capitalization of over $1.7 billion and a trading volume of over $734 Million as of the time of writing. In the last 24 hours, the asset’s market cap has increased by more than 19%, while its trading volume has decreased by more than 20%
Technical Analysis: Breaking Through $1.5 Resistance
Currently, the price of WIF on the 4-hour chart has printed two bullish candlesticks, surpassing the $1.5 resistance mark towards the 100-day Simple Moving Average (SMA). Since breaching this key resistance level, the digital asset has experienced a consistent upward trend, suggesting that bulls are taking control and could further drive the price higher.
Additionally, an analysis of the 4-hour Relative Strength Index (RSI) shows that the signal line of the indicator has successfully risen above 50% and is currently heading to 70%, suggesting that buying pressure is increasing and the asset might experience more upward movement.
On the 1-day chart, although WIF is still trading below the 100-day SMA, it can be observed that the crypto asset with a single bullish momentum candlestick has surged past the $1.5 resistance level. With this recent bullish momentum, the meme coin could extend its rally toward the next resistance level at $2.25.
Finally, on the 1-day chart, the RSI signal line is ascending from the oversold zone toward 50%, further supporting the potential for a continued bullish move and indicating that buying pressure in the market is stronger than selling pressure.
Potential for Further Gains: What to Expect For WIF
As WIF’s price continues to gain traction, it is expected to approach the next key resistance level at $2.2. Should the price break and close above this level, it may continue its bullish move toward the next resistance point at $3.58 and potentially advance to even higher areas.
However, if WIF encounters resistance at the $2.2 mark and experiences a rejection, it could start to decline toward the $1.5 level. Should the price break below this support level, it may signal a further bearish move, leading to additional declines towards the $1.02 mark and beyond.
Featured image from YouTube, chart from Tradingview.com