Following the impressive breakout of Solana [SOL], dogwifhat [WIF], the well-known SOL-based memecoin, also showed signs of a substantial upward trend in the near future.
Aside from the optimistic price movement, other factors contributing to WIF’s bullish forecast include its on-chain metrics and the overall market sentiment. Notably, SOL’s recent surge could positively impact WIF’s upcoming rally.
Dogwifhat Technical Analysis and Crucial Levels
Based on the technical analysis by CryptoCrypto, WIF has successfully broken out of a descending triangle pattern on the four-hour timeframe.
Currently, there are indications that the meme coin might emerge from a bullish double-bottom pattern.
With the breakout and a candle closure above the key resistance level, there is a high likelihood of WIF experiencing a 22% increase. This surge could potentially propel the memecoin to reach $4.7 in the near term.
At the time of writing, the memecoin was trading above the 200-day Exponential Moving Average (EMA), signaling an upward trend.
Meanwhile, WIF’s Relative Strength Index (RSI) implies a probable upward momentum in the days ahead, as it currently resides in the oversold zone.
Favorable On-Chain Metrics
In addition to the technical analysis, on-chain metrics further bolstered WIF’s optimistic outlook.
As per CryptoCrypto’s analysis on Coinglass, the memecoin’s Open Interest (OI) surged by 12% in the last 24 hours and 11.08% in the past four hours, indicating substantial trader interest in the memecoin.
Moreover, WIF’s Long/Short Ratio on Binance was at 2.16, showcasing strong bullish market sentiment at present.
Currently, 68.40% of top traders on Binance held long positions, while 31.60% maintained short positions. WIF was trading around $3.91 after a price increase of over 4.5% in the past 24 hours.
When taking into account these on-chain metrics alongside the technical analysis of dogwifhat, it suggests that the bulls are currently in control of the asset and could provide substantial support for the token in its upcoming rally.
However, WIF’s trading volume saw a 10% decline in the last 24 hours, indicating decreased participation from traders and investors.