Dogwifhat [WIF] price prediction – A 20% rally incoming? It will depend on market sentiment

Dogwifhat (WIF), the well-known memecoin on the Solana network, has been displaying indications of a potential rebound following a 32% price decrease in the previous week. Meanwhile, significant cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP have been facing challenges in gaining momentum, potentially facing further declines.

WIF’s Price Trend

Currently, WIF is trading around $1.85, marking a slight drop of 3.10% in the last 24 hours. Despite the decline, during morning trading, the situation looked bleaker. Yet, an increase in traders’ enthusiasm and confidence led to a recovery from $1.80 to $1.85.

Despite this recovery, caution persists among traders and investors, leading to a 16% reduction in trading volume during the same period.

Dogwifhat (WIF) Technical Evaluation and Critical Levels

Based on CryptoCrypto’s analysis, WIF displayed a bullish trend after finding crucial support at $1.80 and starting an upward movement. Alongside this support, the memecoin formed a descending triangle pattern on the daily chart, hinting at a potential breakout.

WIF Price Projection

As of now, WIF is consolidating within the pattern range. If it manages to breach and close a four-hour candle above $1.945, there is considerable potential for a 20% surge, with a target around $2.32 in the immediate future.

The Relative Strength Index (RSI) for WIF indicates that it is below the overbought region, a signal of a possible price recovery.

However, for the bullish thesis to hold, WIF must break out of the pattern and affirm the move by closing a four-hour candle above $1.945; otherwise, the recovery might not be sustained.

On-Chain Metrics Reflect Divergent Views

Besides the optimistic trajectory seen for WIF, on-chain data from Coinglass suggests strong interest from traders and investors.

Analysis of WIF’s spot inflow/outflow exposed significant outflows of $15.9 million worth of WIF from cryptocurrency exchanges, indicating a potential upward rally and a favorable buying window.

Despite long-term holders accumulating the token, short-term traders might be cautious about initiating new positions, evident in WIF’s Open Interest declining by 4% in 24 hours, suggesting traders’ positions being liquidated.