- Dogwifhat (WIF) is approaching a major short liquidation zone between $0.78 and $0.80, which could trigger a strong short squeeze.
- Price is holding firm above key support at $0.74, showing early signs of bullish momentum.
- A close above the 9-period SMA at $0.7661 could pave the way for a move toward $0.8036 and higher.
- RSI and MACD indicators point toward growing bullish pressure with room for further upside.
Dogwifhat (WIF) is showing bullish signs, with Binance’s 24-hour liquidation heatmap highlighting key short liquidation areas stacked between $0.78 and $0.80. This key liquidity hot pocket can be a catalyst for a vigorous short squeeze if breached, driving an explosive move upwards.
The numbers of heavily leveraged short positions at levels higher than at present indicate bears becoming progressively vulnerable if pressure builds on any move upwards.
At present, WIF trades at $0.7577, signaling a soft rebound from recent bottoms. In spite of wider consolidation, there is a preliminary indication of a shift back to bullish bias, particularly with support remaining steady at about $0.74. There seems to be a move back into control by bulls indicating a building momentum toward an attempt at a breakout.
Also Read: WIF Shows Strong Recovery – Will the Next Target Hit $4.043?
Dogwifhat Holds Support, Preps for Breakout
Technically, WIF is presently just below the 9-period SMA at $0.7661. Successful closure above this level would firm up bullish sentiment and pave the way for a move toward the 50 SMA at $0.7719 and 200 SMA at $0.8036, which corresponds with the heatmap’s high-liquidation area. Breaking this resistance may trigger a rapid move toward $0.82 and even further.
Momentum indicators also reinforce the positive storyline. The Relative Strength Index (RSI) stands at 42.85, comfortably below overbought territory, with potential still on offer to move higher. Furthermore, a bullish crossover is on the horizon as per the MACD, with the signal and MACD lines commencing their convergence, typically a sign of fresh buying interest.
Despite this, Dogwifhat (WIF) has key support intact as it edges closer to a key liquidity-motivated breakout. Coming with stacked short positions on top and technical momentum on the rise, WIF could be on the brink of a high-powered bullish move during upcoming sessions
Also Read: Dogwifhat (WIF) Forms Bullish Pattern — Analysts Target $1.40 Next
