Dogwifhat (WIF), a meme coin based on Solana that has gained popularity, is showing promising signs of reversing its extended downtrend that started in December 2024. Despite a significant drop of over 60%, WIF has formed a bullish price pattern on its daily chart and is set for a substantial upward movement.
Donald Trump’s Influence on the Crypto Market
Following Donald Trump’s favorable stance on crypto and his election win in November 2024, WIF experienced a remarkable 154% surge in price. However, it has since been on a downward trend, erasing all gains and dropping from $4.82 to a critical support level of $1.50.
After consolidating strongly at this support level for over a week, WIF has now broken out, paving the way for a potential significant upward momentum.
Technical Analysis and Future Levels for Dogwifhat (WIF)
Expert technical analysis indicates that WIF has successfully broken out of its consolidation phase but faces immediate resistance at $1.80.
Based on recent price movements, breaching this resistance and closing a daily candle above $1.83 could potentially lead to a 50% surge, reaching $2.71 in the near future.
Despite WIF’s Relative Strength Index (RSI) nearing oversold levels, suggesting a potential upward push and a good buying opportunity, it remains below the 200 Exponential Moving Average (EMA) on the daily chart, indicating a continued downtrend.
Bullish On-Chain Metrics
Long-term holders and traders are showing optimism in light of the bullish price action, as per on-chain analytics firm CoinGlass. Data from spot inflow/outflow indicates that exchanges have seen an outflow of over $1.90 million worth of WIF.
In the crypto space, outflow from exchanges to wallets suggests potential accumulation, creating buying pressure and contributing to price increases.
Additionally, traders on Binance are leaning towards long positions, with CoinGlass’s Binance WIF/USDT long/short ratio at 3.71, reflecting a strong bullish sentiment among traders.
Currently, 78.77% of top WIF traders on Binance have long positions, while 21.33% have short positions.
Current Price Momentum
Considering these on-chain metrics alongside technical analysis, it appears that bulls are in control and could support WIF in its upcoming rally.
With WIF trading around $1.75 and experiencing a 7.80% price increase in the last 24 hours, along with a 92% surge in trading volume during the same period, there is growing participation from traders and investors.
