After experiencing a substantial rally of over 26%, the Solana-based meme coin, Dogwifhat (WIF), has recently undergone a price correction. Despite this, it now appears to be on the brink of a massive upside rally. A closer look at the WIF daily chart supports this optimistic prediction.
In-Depth Technical Analysis and Future Levels for Dogwifhat (WIF)
Expert technical analysis reveals that Dogwifhat (WIF) has been trading within an ascending channel pattern, consistently making higher highs and higher lows since late September 2024. This pattern has been closely followed by WIF, and the meme coin is now setting up for its next higher high after establishing a higher low. If WIF continues to respect this pattern and maintains itself above the $2.50 price level, there is a significant potential for the coin to climb by 25% and reach the $3.20 level in the forthcoming days. Further reinforcing this bullish perspective is WIF’s Relative Strength Index (RSI), which is currently positioned in a zone indicative of a possible imminent price rally.
Exploring Bullish On-Chain Metrics
Enhancing the positive outlook for WIF are its bullish on-chain metrics. On-chain analytics from Coinglass reveal that WIF’s Long/Short ratio is presently at 1.045, signaling a bullish sentiment prevailing among traders. Additionally, the future open interest has escalated by 4.9% over the last four hours and continues to show an upward trend. This increase in open interest suggests a growing interest among traders aligned with the bullish sentiment. Traders and investors often observe rising open interest and a long/short ratio above 1 to build long positions. When these on-chain metrics are combined with technical analysis, it becomes evident that bullish forces are currently dominating the market, potentially supporting the meme coin in its anticipated rally.
Analyzing WIF’s Current Price Momentum
As of the latest data, WIF is trading around $2.60, having surged by over 1.85% in the past 24 hours. Despite this price increase, the trading volume has seen a decline of 26%, likely attributable to the recent price correction. However, given that WIF has established a higher low, there is a strong likelihood that trading volume could see a significant increase in the coming hours or days. This potential surge in trading activity could further fuel the bullish momentum.
The convergence of technical analysis and on-chain metrics paints a promising picture for Dogwifhat (WIF). Investors and traders should closely monitor these developments, as they may signal the onset of a notable price movement. As WIF continues to perform within its current pattern, the cryptocurrency market may witness renewed interest and activity surrounding this meme coin.
