đ¶ Dogwifhat's 20% Surge: Can the Memecoin Maintain Its Momentum?
đ On US election day, crypto markets experienced a significant boost, with Bitcoin (BTC) reaching a new all-time high. Memecoins saw even greater gains, particularly dogwifhat (WIF), which rallied 20% within 24 hours.
đŻ However, there were signs of a potential cooldown after the election day surge, as indicated by a long wick on the daily candlestick. The question now is what lies ahead for this top memecoin gem.
đ Analyzing the price charts, WIF followed a typical pullback scenario and eased at the golden zone on the Fibonacci retracement tool. The support zone between $1.2 and $2.0 triggered the recent +20% pump. Traders may take profits from the rally, which could lead to a pullback to $2.245 or back to the golden zone before continuing its uptrend.
đ The election day rally appeared to be driven by large players, or whales. According to Hyblock, whales significantly increased their WIF positions on November 5th, as shown by the Whale vs Retail Delta indicator. This was a shift from the de-risking behavior observed before the election when they reduced their positions, causing WIF to drop. If whale interest in the memecoin persists, it could propel the rally even higher.
đ Additionally, there was a massive liquidation of short positions in the 12 hours leading up to the press time, with $1.7 million worth wiped out. This suggests that bears had no market advantage in the short term due to the heightened election enthusiasm.
đĄ In summary, any pullback in WIF's price could present a buying opportunity if the uptrend continues. A close above $2.5 could accelerate WIF towards October highs near $3, provided that BTC maintains its bullish momentum.
