Dogwifhat (WIF), the popular meme coin based on Solana has faced enough consolidation in recent days. However, the current chart and its price action appear very attractive, suggesting that it is preparing for a new high. Potential reasons for WIF's positive outlook include the current price movements, bullish on-chain metrics, the surge in the price of Solana (SOL), and favorable market sentiment.
Technical analysis of Dogwifhat (WIF) and upcoming levels
According to the technical analysis of experts, WIF is currently trading within a narrow range of a bullish descending triangle price pattern and seems to be preparing for a breakout. Based on recent price action, if it breaks this pattern and closes the daily candle above $3.60, it could surge 30%, reaching $4.60 in the coming days.
However, if the price cannot hold the important support level and closes the daily candle below $3.25, the likelihood of a significant price drop in the coming days is very high.
Currently, technical indicators such as the 200 Exponential Moving Average (EMA) show that WIF is in an upward trend. The price of the meme coin is trading above the EMA 200 on the four-hour timeframe. Additionally, the Relative Strength Index (RSI) of WIF further supports this bullish outlook.
According to the four-hour chart of the meme coin, the RSI is currently at 47.40. This RSI value indicates that WIF still has room to increase in the coming days. Based on technical analysis, an RSI value above 70 indicates an overbought region, while a value below 30 indicates an oversold region.
Current price momentum and open interest increase
In addition to technical analysis, on-chain metrics also further support the bullish outlook for WIF. According to on-chain analytics firm, the open interest of WIF has increased by 6.7% in the past 24 hours, indicating higher participation from traders and an increase in open positions compared to the previous day.
At the time of reporting, WIF is trading at nearly $3.48, having experienced a price increase of over 1.25% in the past 24 hours. During the same period, its trading volume has decreased by 12%, indicating reduced participation from traders and investors.
