dogwifhat [WIF] retested its previous range high as support in early June. The recent retest has resulted in a positive response in the price of this memecoin. However, despite a 26% increase over two days, WIF bulls still face resistance at the previous week's high.
Is WIF about to experience a bearish reversal?
The daily chart shows that dogwifhat presents a bearish structure. After testing the resistance level of $1.18 in mid-May, WIF created a higher low of $0.93 four days later, followed by a rebound and another test of $1.18.
The second attempt failed, with the price breaking below the $0.93 mark. This led to a bearish market structure on March 31. A few hours before this article was written, WIF attempted to break through the $1 mark but was unsuccessful.
The CMF indicator on the daily chart is at -0.17, indicating a significant outflow of funds. The MACD indicator is near the zero line, about to form a bearish crossover.
The 4-hour chart shows the CMF at +0.06, following a price rebound from a local low of $0.8. The brief breakout above $1.04 suggests a structural change, but a reversal is more likely to occur afterward.
We observed a brief price breakout above the $1.04 mark, followed by a bearish engulfing candle on the 4-hour chart—an indication of a bearish reversal. A CMF drop below +0.05 may suggest that buying pressure has weakened.
The bearish crossover in the MACD may also confirm a shift in momentum. At this point, a sustained WIF rebound may require Bitcoin [BTC] to rise. Before that, traders can expect the price to reverse to $0.8.
The two-week liquidation heatmap shows two significant magnetic zones. The magnetic zone slightly below $0.8, which is far from the market price, is the target for the expected bearish reversal. Another liquidity area at $1.08 may attract interest in WIF.
If short-term demand and speculative interest increase, the possibility of breaking the psychological resistance level of $1 may persist. If Bitcoin can rise in the short term, the likelihood of a breakout will be greater. Otherwise, swing traders may wait for a drop to $0.8 before going long.
