Dogwifhat (WIF), a well-known Solana-based meme coin, is showing promising signs of a trend reversal after a prolonged downtrend that began in December 2024. With a significant drop of over 60%, WIF has now formed a bullish price action pattern on its daily time frame, hinting at a potential massive upside rally.
Donald Trump’s Impact on Crypto Market
Following Donald Trump’s favorable stance on cryptocurrency and his election victory in November 2024, WIF experienced a remarkable 154% price surge. However, since then, it has been on a downward trajectory, erasing all its gains and plummeting from $4.82 to a critical support level of $1.50.
After consolidating at this support level for over a week, WIF has finally broken out, signaling a clear path for a substantial upward momentum.
Dogwifhat (WIF) Technical Analysis and Upcoming Level
Expert technical analysis indicates that WIF has successfully broken out of its consolidation phase but faces immediate resistance at $1.80. If the meme coin manages to surpass this resistance and close a daily candle above $1.83, there is a strong possibility of a 50% surge to reach $2.71 in the near future.
While the Relative Strength Index (RSI) suggests a potential upside rally and an attractive buying opportunity, WIF is still trading below the 200 Exponential Moving Average (EMA) on the daily time frame, indicating a prevailing downtrend.
Bullish On-Chain Metrics
On-chain analytics firm CoinGlass reports that long-term holders and traders are looking to capitalize on the bullish price action of WIF. Data shows that exchanges have witnessed an outflow of over $1.90 million worth of WIF, indicating potential accumulation and creating buying pressure for a price surge.
Moreover, traders on Binance are displaying strong bullish sentiment, with the Binance WIF/USDT long/short ratio standing at 3.71. Currently, 78.77% of the top WIF traders on Binance hold long positions, while 21.33% hold short positions.
Current Price Momentum
Combining these on-chain metrics with technical analysis, it is evident that the bulls are in control of WIF, supporting the meme coin for its upcoming rally. Trading near $1.75, WIF has witnessed a price rally of over 7.80% in the past 24 hours, accompanied by a 92% surge in trading volume, indicating increased participation from traders and investors.
In conclusion, with favorable on-chain metrics and technical indicators aligning towards a bullish trend, Dogwifhat (WIF) appears to be gearing up for a significant upward movement, presenting an enticing opportunity for investors and traders alike.