dogwifhat [WIF], the renowned meme token based on Solana, seems ready to experience a positive uptrend after a three-week period of consolidation.
The support from long-term holders appears to be growing for WIF, leading to a breakout from its consolidation phase, indicating a potential upward trajectory in the near future.
Massive $94 Million WIF Withdrawal from Exchanges
The recent breakout of WIF coincided with a notable outflow from exchanges, as revealed by the on-chain analytics company Coinglass.
Throughout the consolidation period, exchanges consistently recorded outflows, culminating in an impressive withdrawal of $93.80 million from these platforms.
This transfer indicates that long-term investors have moved $93.8 million worth of WIF from exchanges to their personal wallets. This trend presents a promising buying opportunity, reduces the possibility of selling pressure, and hints at a potential upward movement.
WIF Technical Evaluation and Crucial Levels
According to the technical analysis by CryptoCrypto, WIF has broken free from its extended consolidation phase but is facing challenges in closing a daily candle above this level.
Based on recent price movements, if WIF successfully seals a daily candle above the $3.5 mark, there is a high chance it could surge by 30%, reaching $4.7 in the imminent days.
The Relative Strength Index (RSI) for WIF currently sits at 53, staying below the overbought threshold of 70, indicating a potential rally for the meme token in the days ahead.
Furthermore, WIF is trading above the 200 Exponential Moving Average (EMA) across both the four-hour and daily time frames, signaling an upward trend.
Optimistic Sentiment Among Binance Traders
This optimistic technical outlook received further backing from Binance traders, as per Coinglass. The WIF Long/Short ratio on Binance stood at 4.24, showcasing strong bullish sentiment among traders.
Moreover, 80.93% of leading traders on Binance hold long positions, while only 19.07% have short positions.
By amalgamating these on-chain metrics with technical analysis, it is evident that bulls are currently in control of the asset and could drive WIF further in its upcoming rally.
Currently, WIF is trading around $3.41 and has observed a price surge of more than 4.05% in the last 24 hours. Concurrently, its trading volume has surged by 25%, pointing to increased trader engagement following the recent breakout.