The TD Sequential indicator on the 12-hour chart for dogwifhat (WIF) suggested a potential buy signal as it trades around $0.59.
The recent candlestick formations showed a declining trend where WIF bottomed out at $0.59, coinciding with the completion of the TD setup, usually indicative of a reversal.
If WIF can leverage this momentum and breach the immediate resistance level at $0.6268, further targets may be set around $0.70 and potentially higher.
The $1.50 target — a significant psychological level —implied a near 200% gain from current levels, achievable if the buying pressure sustains and market conditions favor meme coins.
WIF/USDT 12-hour chart | Source: Ali/X
Conversely, failure to sustain the current support could see WIF retract to lower support levels around $0.5873 or even lower if bearish pressure intensifies.
This scenario would likely involve extended consolidation or further declines, particularly if broader market sentiment remains cautious or bearish.
Navigating dogwifhat’s Key Liquidity Levels
The liquidation heatmap indicated potential turning points for WIF. Notably, a cluster of liquidity formed around $0.63, which recently witnessed WIF picking liquidity before a price retracement.
This level appeared dense with potential liquidations, suggesting strong buying interest that might propel WIF prices upward if sustained.
Below this, another critical liquidity cluster formed at $0.57, serving as a possible lower support zone.
If prices were to fall to this level and trigger liquidations, it could indeed act as a support, stabilizing the price and potentially driving a rebound in response to the liquidations.
WIF liquidation heatmap | Source: Coinglass
If the $0.57 level holds, it may confirm its role as a support zone, catalyzing a potential price recovery back towards higher liquidity levels at $0.63.
Conversely, should the $0.57 level fail under selling pressure, resulting in a breakdown, WIF might face further declines.
This could test lower supports pushing WIF into a more bearish phase, and requiring new accumulations to establish a firmer base for recovery.
Holders Potential Sell-off After Drop
WIF’s on-chain activities over the last week revealed contrasting trends with the “Token Transfer,” showing an uptick in the number of transfers peaking at 84,000.
Despite these high numbers of transfers, the value per transfer remains relatively modest, suggesting a high volume of smaller transactions.
On the other hand, the “Token Dex Trading” showed a similar pattern in trade counts. The number of trades reached a high of around 74,000 yet the total trade value indicated a lower average value.
These patterns suggest that while the activity around WIF tokens is high, the individual trade and transfer values are relatively low.
WIF on-chain activity | Solscan
This could indicate a broader distribution of WIF among more holders, possibly as traders exit larger positions into smaller ones.
Such activity could stabilize the price by increasing the token’s dispersion among participants, yet it also implies a cautious market sentiment, as no significant accumulation spikes are evident.
Increased activity may support price levels through broader distribution, yet the low value per transaction suggests a lack of strong buying pressure.
This could cap potential price gains or even lead to declines if the trend of exiting continues without new large-scale buying interest.
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