In the memecoin segment, the market has seen renewed momentum over the past 24 hours, with dogwifhat (WIF) being among the coins that have performed well. In fact, WIF managed to rise by nearly 10% – A sign of greater bullish pressure as trading activity increased across the spot and derivatives markets.
With the rally ongoing at press time, the $2-psychological price level could be the next barrier for the memecoin.
Market structure favors buyers, particularly within the derivatives market
Consider this – Future Average Order Size Data indicated that whales and large traders have been increasingly active in Futures markets.Their positioning hinted at a growing willingness to accumulate exposure at press time levels.
For WIF, such participation strengthens directional conviction because large orders tend to amplify price momentum.
Alongside the token’s surging whale activity, buyer dominance has also been evident across Futures trading flows. The imbalance between aggressive WIF buyers and sellers seemed to reinforce the bullish sentiment that developed during the altcoin’s rally.
At press time, the token’s long/short ratio stood at 2. The number of long positions in the market were almost double the number of short positions too.
Consequently, derivatives positioning appeared to be reinforcing the upward price move rather than constraining it.
Eyes are now on the $2 psychological resistance level
At the time of writing, the daily chart seemed to show signs of increasing momentum. The market’s focus turned to the next significant technical hurdle – Set at $2.
Psychological price levels have a history of drawing in groups of sell orders. This happens because traders, after seeing prices climb quickly, often want to lock in their gains.
Should sellers defend this area, WIF may enter a short consolidation phase as the market absorbs supply.
However, sustained buying pressure could shift that balance. In fact, the token’s price is now trading above the 20-day EMA – A key signal for the market’s strong momentum.
In such a scenario, a successful breakout above the $2 resistance would likely expose higher liquidity zones and extend the prevailing rally.
What’s next for WIF?
The whale accumulation, buyer dominance in the Futures market, and improving activity on the on-chain front, are all providing support to the ongoing momentum. However, it remains to be seen how the coming sessions will perform in terms of maintaining the strength of the rally.
A strong breakout above the $2-price level, which is the resistance zone, will further fuel the positivity in the memecoin market.
However, it might also lead to a period of cooling before the memecoin’s next move.
Final Summary
- WIF’s price surged by 10% in 24 hours as whale and buyer dominance strengthened across the Futures market.
- The memecoin is approaching the $2 psychological level, where traders expect a decisive breakout or rejection.
Kelvin Murithi is a crypto journalist and on-chain analyst covering market structure, price action and blockchain data. He is a Bsc. Actuarial Science graduate and harnesses his statistical and data analysis skills to translate complex metrics into clear insights for everyday crypto investors.
