Dogwifhat (WIF), a popular Solana-based coin, is showing signs of reversing its prolonged downtrend, which began in December 2024. After experiencing a decline of over 60%, WIF has formed a pattern d bullish price action on its daily period. and is ready for a massive bull rally.
Donald Trump’s impact on the crypto market
Following Donald Trump’s pro-crypto stance and his election victory in November 2024, WIF saw an explosive price increase of 154%. However, since then, it has seen a continuous decline, losing all its gains and dropping 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. Today, it officially broke out of this zone, paving the way for massive bullish momentum.
Dogwifhat (WIF) Technical Analysis and Upcoming Level
According to expert technical analysis, WIF has managed to break out of its consolidation phase but faces immediate resistance at $1.80.
Based on recent price action, if the meme coin breaks through this resistance and closes a daily candle above $1.83, there is a high chance that it will surge 50% to reach 2.71 $ in the future.
On the positive side, WIF’s Relative Strength Index (RSI) is near the oversold zone, suggesting upside potential 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.
On-chain bullish metrics
While analyzing this bullish price action, long-term holders and traders are looking to bet on the upside, according to on-chain analytics firm CoinGlass. Spot inflow/outflow data reveals that exchanges experienced an outflow of WIF worth over $1.90 million.
In the cryptocurrency landscape, outflows refer to the movement of assets from exchanges to wallets, indicating potential accumulation. This can create buying pressure and contribute to a price spike.
Meanwhile, traders on Binance appear to be betting on the long side. CoinGlass’ 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 Dynamics
Combining these on-chain metrics with technical analysis, it appears that bulls are currently dominating the asset and could support the meme coin during its next rally.
Currently, WIF is trading near $1.75 and has seen a price increase of over 7.80% in the last 24 hours. During the same period, its trading volume jumped 92%, indicating increased participation from traders and investors.
