WIF (Dogwifhat), a well-known memecoin built on the Solana blockchain, is displaying positive signals of a potential recovery following the formation of a bullish price pattern on its daily chart.
Over the past few weeks, WIF holders have faced challenging times, with the cryptocurrency experiencing a significant price decline of more than 70% since November 2024.
Factors Contributing to WIF’s Potential Upsurge
Despite the recent market trends, there are several factors indicating a possible surge for WIF. These include a bullish divergence pattern, increasing trader interest, Solana’s recent gains, and broad adoption of the network.
Technical Analysis and Price Forecast for Dogwifhat (WIF)
Analysis from CryptoCrypto suggests that WIF has formed a bullish divergence at a key support level of $1.30 on the daily timeframe. This support level has historically been significant for WIF, leading to notable price rallies.
Since August 2024, this meme coin has touched the support level multiple times, consistently showing strong upward momentum.
Aside from the bullish divergence, WIF seems to be consolidating within a narrow range between $1.345 and $1.50.
Based on recent price movements, a breakout above the consolidation range with a daily candle closing above $1.52 could potentially drive WIF up by 35% to reach $2.10 in the near future.
Increasing Interest from Traders in WIF
With the positive price action, intraday traders have demonstrated significant interest and confidence in WIF, as highlighted by on-chain analytics firm Coinglass. At present, WIF’s long/short ratio sits at 1.10, indicating a strong bullish sentiment among traders.
Meanwhile, Binance’s WIFUSDT long/short ratio stands at 4.01, revealing a strong preference for long positions over short ones. Additionally, data indicates that 80% of leading traders hold long positions, while 20% hold short positions.
Considering these metrics alongside technical analysis, it appears that bulls are currently in control, potentially pushing WIF to break out of its consolidation phase and reach the projected target.
Influence of Solana on WIF’s Price
Besides the aforementioned factors, Solana’s recent strong performance, increased DEX volume, and rapid adoption of its technology could play a role in affecting the prices of WIF and other altcoins based on the SOL network.