Reported by CoinWorld:
During the election period, the cryptocurrency market surged, with Bitcoin [BTC] reaching an all-time high (ATH) as signs of Trump’s victory intensified. Memecoins saw even stronger gains, with dogwifhat [WIF] rising 20% within 24 hours.
As of press time, there was already a long candlestick wick on the daily chart, indicating that the election day’s upward trend might cool down. But what will be the next step for one of the top memecoin gems post-election?
Next Steps for WIF
On the price chart, WIF followed a textbook retracement scenario, retreating in the golden zone of the Fibonacci retracement tool (50%-61.8% Fibonacci levels, marked in white). The support area of $1.2 – $2.0 (white) triggered the latest +20% surge.
As some traders may take profits from the rebound, the cooling off might drag WIF to $2.245 (38.6% Fibonacci level) or back to the golden zone. After that, the memecoin might continue its upward trend.
In this scenario, sidelined bulls might seek to re-enter the market at the aforementioned support levels.
That said, if BTC maintains its bullish momentum, a close above $2.5 could accelerate WIF’s rise to its October high near $3.
WIF Whale Exposure
Nevertheless, the election day’s surge seems to have been driven by large participants. According to Hyblock data, whales significantly increased their WIF positions on November 5, as indicated by the whale-to-retail Delta metric.
This contrasts with the pre-election practice of significantly reducing risk, as they cut positions, leading to a WIF decline. If whales’ interest in the memecoin persists, the rally might further push prices higher.
The bullish outlook mentioned above is also supported by the liquidation of a large number of short positions. In the 12 hours leading up to press time, $1.7 million worth of short positions (betting on WIF’s price decline) were wiped out.
In short, fueled by election enthusiasm, bears seem to have no market advantage, at least in the short term. If so, any retracement in WIF, if the upward trend continues, could be an excellent buying opportunity.
