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Dogwifhat ($WIF) could soar by 50% to reach $2.71 in the future.
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On-chain metrics reveal that exchanges have witnessed an outflow of over $1.90 million worth of $WIF meme coins.
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Currently, 78.77% of top $WIF traders on Binance hold long positions.
Dogwifhat ($WIF), a popular Solana-based meme coin, is showing signs of reversing its prolonged downtrend, which began in December 2024. After experiencing a drop of over 60%, $WIF has formed a bullish price action pattern on its daily time frame and is poised for a massive upside rally.
Donald Trump’s Impact on Crypto Market
Following Donald Trump’s pro-crypto stance and his election victory in November 2024, $WIF saw an explosive 154% price surge. However, since then, it has experienced a continuous decline, losing all its gains and falling from $4.82 to a crucial support level of $1.50.
At this support level, $WIF has been in strong consolidation for over a week. Now, it has officially broken out from that zone, clearing its path for massive upside momentum.
Dogwifhat ($WIF) Technical Analysis and Upcoming Level
According to expert technical analysis, $WIF has successfully broken out of its consolidation phase but faces immediate resistance at $1.80.
Based on recent price action, if the meme coin breaches this resistance and closes a daily candle above $1.83, there is a strong possibility it could soar by 50% to reach $2.71 in the future.
On the positive side, $WIF’s Relative Strength Index (RSI) is near the oversold area, suggesting a potential upside rally and an ideal buying opportunity. However, $WIF is trading below the 200 Exponential Moving Average (EMA) on the daily time frame, indicating that it remains in a downtrend.
Bullish On-Chain Metrics
While analyzing this bullish price action, long-term holders and traders are looking to place bets on the upside, according to the on-chain analytics firm CoinGlass. Data from spot inflow/outflow reveals that exchanges have witnessed an outflow of over $1.90 million worth of $WIF.
In the cryptocurrency landscape, outflow refers to the movement of assets from exchanges to wallets, indicating potential accumulation. This can create buying pressure and contribute to a price surge.
Meanwhile, traders on Binance appear to be betting on the long side. CoinGlass’s Binance $WIF/USDT long/short ratio currently stands at 3.71, indicating strong bullish market sentiment among traders.
Currently, 78.77% of top $WIF traders on Binance hold long positions, while 21.33% hold short positions.
Current Price Momentum
When combining these on-chain metrics with technical analysis, it appears that the bulls are currently dominating the asset and could support the meme coin in its upcoming rally.
Currently, $WIF is trading near $1.75 and has experienced a price rally of over 7.80% in the past 24 hours. During the same period, its trading volume surged by 92%, indicating increased participation from traders and investors.