Despite the widespread downturn in the cryptocurrency market, Dogwifhat [WIF], the well-known memecoin built on the Solana blockchain, has managed to hold steady at the 0.618 Fibonacci retracement level.
Over the past week, WIF has maintained a narrow trading range between $3.02 and $3.37, aligning with the Fibonacci golden zone spanning from 50% to 61.8%.
Increase in Large Investors’ Activity
During this period of price consolidation, significant activity from whales and investors has been observed, as indicated by Coinglass’s WIF Spot Inflow/Outflow analytics data.
Notably, a total of $62.23 million worth of WIF tokens has been withdrawn from exchanges by these major players. This substantial outflow suggests a probable buying opportunity on the horizon, hinting at a potential uptrend in the near future.
Meanwhile, traders seem to have closed their positions amid the prolonged consolidation phase. Recent data shows a 6% decrease in WIF’s Open Interest (OI) over the last 24 hours, signaling reduced involvement from traders who might be anticipating a breakout from the current price range.
Key Technical Levels for Dogwifhat
According to the technical analysis from CryptoCrypto, WIF is currently positioned within a critical Fibonacci golden zone, known to be a pivotal level where price action could reverse or extend its trajectory.
Market participants often rely on this range to identify optimal support and resistance levels for the asset.
Price Outlook for WIF
Considering the recent price movements, a sustained position above $3 could potentially propel WIF to surge by 60%, aiming to breach the $4.90 mark in the days ahead.
Moreover, the Relative Strength Index (RSI) for the memecoin indicates room for significant upside, standing at 50.56, suggesting that WIF is currently neither oversold nor overbought.
When combining these various indicators with technical analysis, it appears that the bullish sentiment is prevailing, offering strong backing for a potential rally.
As of the latest update, WIF is trading around $3.06, exhibiting a decline of more than 7% in the past 24 hours.
Simultaneously, trading volume has plunged by 47% during the same timeframe, underscoring reduced engagement from traders and investors compared to previous sessions.