The post Can WIF bounce back from its $1.2 low? Key insights show… appeared on BitcoinEthereumNews.com.

The recent downtrend pulled WIF toward its 5-month low while the price struggled to break above the near-term EMAs. Derivates data reaffirmed a bearish edge, but the long/short ratio on Binance showed some bullish interest. dogwifhat [WIF] finally saw a glimmer of hope as buyers entered the market after WIF’s recent rebound from the $1.2 support level. The meme coin traded around $1.53 at press time and faced resistance around the 20-day EMA near the $1.6 mark. Looking at the confluence of support levels near the $1.53 level, WIF could see a near-term uptrend before likely continuing its long-term downtrend. dogwifhat struggled to sustain above the 20 EMA Source: TradingView, WIF/USDT After witnessing a consistent downtrend since hitting its ATH around five months ago, WIF struggled to hold key support levels. After losing nearly 66% in two months, the recent rebound from the $1.2 support has finally set the stage for the buyers to retest the 20 EMA resistance. It’s worth noting that the recent price movement also formed a rising wedge structure on the daily chart. Such a structure typically depicts a continuation trend, i.e., it could lead to a continued downtrend in the coming weeks. In the short term, WIF could likely see a rebound from its immediate support level near $1.5. Since this support level is at the confluence of multiple support levels, any rebound from here would push WIF toward the $1.8-$2 resistance range. However, the bearish pressure remained prevalent since the meme coin remained below the 20 EMA. So, any decline below the $1.5 support would confirm a patterned breakdown and provoke a downtrend toward the $1.2 support. The Relative Strength Index (RSI) recently fell below the 50 mark and its moving average, depicting a somewhat bearish edge. Traders should look for a close above…

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Filed under: News - @ September 1, 2024 7:02 am