$WIF in a DEATH SPIRAL, where to SHORT IT
2025-02-02
Category: None

SEED_WANDERIN_JIMZIP900:WIF  Back To Its Potential Death Spiral After a Short-Lived Dead Cat Bounce

Still one of the worst-performing memecoins with a market cap over a billion USD. Annoyingly, I had to close my short that I opened last Saturday after it hit my TP1 at $1.01 (Bearish Pennant #2 Target, see the 2hr chart for details) and immediately started pumping due to some hyped-up news about a promo campaign.

I don’t care about such news—these are for the streets. But I care about my capital, so I fully exited at entry ($1.285) since Dead Cat Bounces can be deadly sometimes. Not on this occasion, though—the price didn’t even reach my main $1.4 key resistance level before immediately selling off, leaving a nasty wick on that candle.


Downtrend Continuation and Short Setups

The Daily chart shows heavy selling pressure, and looking at the 2-hour chart, things aren’t looking any better—unless you're looking for short positions.


Potential entries:


$1.11 – First potential short due to a strong confluence of:

Golden Pocket (which acts as resistance when approached from below) & Descending Trendline (originating 6 weeks ago and tested multiple times).


$1.18 – Another short setup using:

Fib 0.5 retracement & descending 50 MA (yellow line on the 2hr chart).


$1.27-$1.28 – Potential Double Top rejection confirmation with:

Horizontal resistance & Equal High-type rejection.


$1.4 – The safest short entry, if price rejects:

Hardened horizontal resistance & Curved-down 200 MA, which would act as a heavy rejection zone.


Bearish Momentum & Macro Risks

Momentum is bearish on all timeframes, and I’ll look for further RSI rejections before entering any short positions. That said, these positions become high-risk if ETH pushes through its resistances. the DXY correcting below 108.05 would also invalidate 


Sector Outlook: Absolute Pessimism

Not just  SEED_WANDERIN_JIMZIP900:WIF —virtually the entire memecoin sector looks weak. No fundamentals = eventual extinction. Still can’t believe this thing was nearly $5 billion in market cap.


You do you, as always. 👽💙