Dogwifhat appeared to be regaining traction after witnessing a serious crackdown in the past few days. It has established base support and now signals a bullish reversal with a double-bottom.
After revisiting the $4 level in May, the following month saw WIF through its biggest loss since it started to correct lower in late March. However, it found a solid level at $1.47 and recovered in the late month.
The recovery was not strong enough to bring the bulls back and the price slipped back to the solid level. It reestablished base support above the level yesterday and started to show signs of strength.
Looking at the market structure, WIF’s bearish bias might soon change to bullish following the latest bounce back. As seen on the price chart, it is currently painting a double-bottom pattern on the daily timeframe.
If the price climbs back above this week’s high, we should anticipate a surge to the falling resistance line, preventing bullish actions for the past three months. A break above the line should activate a bigger surge.
Considering a bearish return, the $0.5 range would be the next target area to watch for another leg down. Currently, the bears appear off the market. While most altcoins are trading in the green zone today, WIF sees the most gain, leading altcoins recovery with a 25% increase in the last 24 hours.
WIF Key Levels To Watch
Source: Tradingview
On the way up, the $2.38 resistance is the immediate obstacle for the bulls right now. If they scale through, the $3.1 resistance would be the next target with a potential breakup to $4.08.
As the market sits well above base support of $1.47, a breakdown from there could sink the price to $1 and potentially $0.55 in no time.
Key Resistance Levels: $2.38, $3.1, $4.08
Key Support Levels: $1.47, $1, $0.55
Spot Price: $1.99
Trend: Bearish
Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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