Trade Analysis #21: Hold Off on Buying $WIF (Dogwifhat) Just Yet!
$WIF has fallen a significant 70% from its all-time high of $4.8662. However, hold off on buying the dip just yet. Here's why:
Given the current bearish market sentiment, a sustained bullish run is unlikely for WIF right now. Additionally, WIF lacks a well-defined support level, making it difficult for the price to rise consistently.
Here are two potential entry points for WIF:
Scenario 1 - Support Level Breakout with Low Volume.
The first scenario for entry is if WIF falls to the $1.44 support level with a higher RSI (Relative Strength Index) and lower trading volume compared to the lows of June 24th and July 5th (1-day chart). This would indicate the formation of a solid support base at $1.44. This could be a good buying opportunity.
Scenario 2 - High Volume Breakout Above Resistance.
This scenario involves WIF experiencing a significant volume surge that breaks through the $1.78 resistance level. This could also be an entry opportunity, but remember to factor in the overall market sentiment, particularly Bitcoin's price.
That's it for today Trade Analysis. I hope this short analysis help you make smarter trade decision.
Trade Smarter! Peace Out ;)
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