- Dogwifhat is on the verge of breaking the $3 resistance level in the near future.
- There might be a slight price dip soon, which could present an opportunity for bulls to re-enter the market at lower support levels.
- Dogwifhat [WIF] recently broke past the local resistance at $2.37, reversing prior expectations of a smaller consolidation range.
Dogwifhat shows promising bullish signals, but caution is advised for potential minor retracements before further gains.
Bullish Momentum Seen with Dogwifhat Breaking Key Resistance Levels
The latest developments in Dogwifhat’s price action reveal a significant bullish momentum. After overcoming the $2.37 resistance, WIF has established a new bullish trend, negating the earlier concerns of a downtrend within a confined range since April. This newfound positive sentiment has established higher targets for WIF, including the $4 mark. The cryptocurrency’s upward momentum suggests a potential for reaching this target, although traders should be prepared for minor retracements before the uptrend continues.
Observing Potential Bearish Divergence on Technical Indicators
On the 12-hour chart, Dogwifhat exhibits a strong bullish structure, with the RSI maintaining above 70 indicating robust bullish momentum. The price and RSI making higher highs typically reflect this upward movement. However, traders should watch for potential bearish divergence, which occurs when the RSI forms a lower high while the price moves higher. This could lead to a short-term price correction, especially around the $2.92 resistance level, where prices might temporarily fall. The CMF value being above +0.05 underscores substantial capital inflows, reinforcing the bullish sentiment.
Healthy Market Sentiment Supported by Futures Data
Futures market data further support the bullish sentiment surrounding Dogwifhat. The rising Open Interest, coupled with increasing prices, indicates speculators’ confidence in sustained price gains. The upward trend in the funding rate also points to a dominance of long positions, showcasing a positive outlook among market participants. Despite these optimistic signs, the declining spot CVD is worth noting, as it shows a contradiction with the price action volumes and might serve as an early indicator of a potential slowdown in momentum.
Conclusion
In conclusion, Dogwifhat (WIF) demonstrates a strong bullish trend with upcoming potential to break the $3 resistance and possibly reach $4. Traders should be mindful of the possibility of minor price corrections, especially around key resistance levels, and consider these dips as opportunities for long entries. Overall, the current market sentiment and technical indicators suggest a favorable short-term outlook for WIF, provided that traders remain vigilant and adapt to evolving market conditions.
