Memecoin Market Finds Temporary Relief
The memecoin market saw a slight reprieve over the past 24 hours, with CoinMarketCap data showing a nearly 2% increase in overall market capitalization and an 8.5% spike in daily trading volume. This recovery followed Bitcoin’s (BTC) surge past the $82.5K resistance level on April 11.
Among the notable performers was dogwifhat (WIF), which posted a 9% gain within 24 hours. Still, despite this rally, WIF remains locked in a bearish structure on higher timeframes. The Solana-based meme token mirrored SOL’s impressive 18% uptick over the past three days, but questions remain about the sustainability of its momentum.
WIF’s Rally May Be Short-Lived
From a technical standpoint, WIF appears to be more favorable for short setups rather than long positions. The recent gains, while impressive, were insufficient to offset the heavy losses suffered in previous weeks.
A key bearish order block lies between $0.5 and $0.55, aligning with the 50% Fibonacci retracement level of WIF’s six-week downtrend. This zone also coincides with the upper Bollinger Band, strengthening its case as a resistance level where short positions could become more appealing.
The Accumulation/Distribution (A/D) indicator did show a bounce earlier in April, yet it failed to break past the highs recorded in mid-March—signaling that bullish buying pressure remains limited. The Chaikin Money Flow (CMF) has been even more telling, consistently staying below -0.05 for the better part of the past three months, indicating sustained selling pressure.
Watch the $0.5–$0.55 Zone Closely
Short-term traders should keep an eye on the $0.45–$0.47 region, which recently experienced a flush of short liquidations. Following this sweep, bulls managed to hold WIF above the $0.42 mark, suggesting a temporary floor for price action. Bitcoin’s strong performance may have also bolstered sentiment across the memecoin sector.
The $0.48–$0.5 range is currently a magnet for liquidity, making it a likely near-term target. Further up, $0.6 represents the next significant liquidity pocket. However, given the confluence of resistance levels near $0.55 and the overall weakness in demand, a breakout beyond this range remains unlikely in the immediate future.
Should WIF consolidate around $0.46 over the next 24 to 48 hours, we can expect increased liquidity build-up near the $0.5 mark. In this scenario, a short-lived bounce followed by a bearish reversal appears to be the most probable outcome.
For traders eyeing short opportunities, the $0.5–$0.55 zone offers a high-probability area to consider—though monitoring BTC’s trend will be essential in confirming this setup.
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