WIF Prepares for a Larger Rally as Bulls Defend the $1.98 Support Zone

WIF/USDT saw a 25.4% price correction from Monday, 30 September's highs to Thursday, 3 October's lows. This deep correction also happened to retest the former range highs at $1.98, but the bulls have defended the level as support.

WIF’s price encountered a 25.4% correction from 30 September’s highs to 3 October’s lows. This deep correction retested the former range highs at $1.98, which the bulls defended.

Since then, buyers have pushed the price up by 18.9% – a promising first step toward recovery. However, the $2.5 resistance remained a formidable barrier.

Highlighting the significance of $2.5, the Visible Range Volume Profile showed that the trading since June was concentrated between $1.38 and $2.25. The price broke out past $2.25 once again after the dip, indicating bullish intent.

The CMF was at 0.14, remaining above 0.05 despite the recent volatility, indicating steady buying pressure. The Awesome Oscillator also showed bullish strength.

Fibonacci retracement levels were plotted from the downward move in July and early August, revealing that the $2.5 level was the 78.6% retracement, making it a key resistance.

A daily session close above $2.5 would indicate WIF’s preparation for a larger rally. This level acted as a resistance zone in June and early July. To the north, the $2.5 and $2.9 levels were the immediate bullish targets.

The Futures market showed firm bullish belief, with rising Open Interest. The increase in spot CVD also supported the bullish bias, indicating genuine demand behind the uptrend.

Over the past two days, the liquidations were low compared to 1 October. Trader liquidations were small in recent hours, but it would be interesting to see if the short liquidations increase noticeably as WIF approaches the $2.5 zone. This could indicate a liquidity pocket being swept and might lead to another price dip.

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