Dogwifhat (WIF), a popular meme coin based on Solan, has seen quite a bit of consolidation over the past few days. However, its current chart and price action seem quite intriguing, suggesting it is poised for a new high.
Potential reasons for WIF’s positive outlook include current price action, bullish on-chain performance, rising Solana (SOL) prices, and favorable market sentiment.
Dogwifhat (WIF) Technical Analysis and Upcoming Levels
According to expert technical analysis, WIF is currently trading in a tight bullish descending triangle zone and appears poised for a breakout. Based on recent price action, if it breaks this pattern and closes the daily candle above the $3.60 level, it could rise 30% to reach the $4.60 level in the coming days.
However, if the price fails to hold a crucial support level and closes the daily candle below $3.25, there is a strong possibility of a significant decline in prices in the coming days.
Currently, technical indicators such as the 200 Exponential Moving Average (EMA) suggest that WIF is in an uptrend. The meme coin price is trading above the 200 EMA on the four-hour chart. Additionally, the WIF Relative Strength Index (RSI) further supports this bullish outlook.
According to the meme coin’s four-hour chart, the RSI is currently 47.40. This RSI value suggests that WIF still has room to rise in the coming days. According to technical analysis, an RSI reading above 70 indicates overbought territory, while a reading below 30 indicates oversold territory.
Current price dynamics and growing open interest
In addition to technical analysis, on-chain indicators also support WIF’s bullish outlook. According to the analytics firm, open interest in WIF increased by 6.7% over the past 24 hours, indicating higher trader participation and an increase in open interest compared to the previous day.
At the time of publication, WIF is trading around $3.48, with the price up over 1.25% in the last 24 hours. Over the same period, trading volume fell 12%, indicating a decline in participation by traders and investors.
