Market Direction

Dogwifhat approaches key resistance amid bullish sentiment

Published: Oct 7, 2024

WIF holds strong support at $2.20 with eyes on $3.05 resistance. Can Dogwifhat break out of its consolidation range?

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WIF is one we call perfectly. We expected a pullback to the $1.96 to $2.20 zone (check prior Market Direction). WIF pulled back to $196 and bounced perfectly from that level.
The price has broken out of the main downtrend line, and it's back above $2.20, and it is now resetting the prior highs at $2.60.
Beyond the current price, $3.05 is the more significant horizontal resistance.
On the downside, we'd expect $1.96 to $2.20 to continue to be a strong support zone, but the likelihood is that $2.20 would be enough support on its own.
On the Daily, the RSI is close to overbought territory, and it has put in a bearish divergence (higher high in price and lower high on the oscillator).

7. WIF price chart displaying critical resistance levels, trend lines, and RSI indicating bullish market momentum.

Next few days prediction: Neutral ($2.20 to $2.70)
Next 7 days prediction: Bullish
Next 7 days price target: $3.05

Cryptonary's take

RSI aside, WIF looks very bullish. However, it may be the case that the bearish divergence needs to be reset, meaning that WIF may need a small period of consolidating in the mid-$2s. However, it's possible the chart and market structure overrides the bearish divergence on the RSI here. Therefore, we're constructive.

We'd be looking to add WIF on any major pullbacks. Over the coming days, we may see some consolidation in the mid-$2s, with prices potentially breaking out beyond Thursday if we see positive Inflation data on Thursday.