The $0.55 supply zone has been identified as a critical resistance level for the memecoin dogwifhat. Despite a recent 9% rally in 24 hours, the coin still maintains a bearish outlook on higher timeframes. The meme sector as a whole saw a 2% increase in market cap and an 8.5% increase in daily trading volume following a bounce in Bitcoin above $82.5k on April 11th. However, traders are advised to be cautious as the bearish structure on the daily chart suggests that selling opportunities may be more profitable than buying.
Technical analysis indicates that the $0.55 resistance level is a key area to watch for potential selling opportunities. The bearish order block at this level, combined with the 50% Fibonacci retracement level and the upper Bollinger Band, suggests that selling pressure may increase in this range. While the A/D indicator showed some buying pressure, the CMF indicator has been consistently below -0.05 for the past three months, highlighting the lack of bullish strength in the market. Traders can use the $0.5-$0.55 region as a potential area to sell WIF.
The liquidation heatmap shows that the $0.45-$0.47 region has seen a build-up of short liquidations, indicating a level of support for the WIF price. The recent gains in WIF may have been influenced by a Bitcoin price move higher, but a breakout above the $0.55 resistance level seems unlikely given the weak demand and confluence of resistances. Traders should monitor the $0.5-$0.55 area and the trend of Bitcoin to determine if shorting WIF would be a feasible option in the near term.
In conclusion, despite the recent rally in dogwifhat, the overall bearish structure of the coin suggests that selling opportunities may be more profitable for traders and investors. The $0.55 resistance level presents a key area to watch for potential selling opportunities, as technical indicators point to a lack of bullish strength in the market. Traders should monitor the $0.5-$0.55 region and the trend of Bitcoin to determine the feasibility of shorting WIF in the near future.
