Dogwifhat [WIF], a meme coin built on the Solana blockchain, is currently demonstrating resilience amidst a potential short-term price correction. Despite predictions of a drop to the $2 level, WIF is holding steady around $2.50 after recent analysis suggested a possible downturn.
WIF traders are actively buying the dips, reigniting positive sentiment in the market. With the formation of a rising wedge pattern, there is a chance for a rally, particularly during this bullish quarter.
Maintaining the support at $2.50 could pave the way for WIF to reach $3.10, potentially offering a 20% profit opportunity. Conversely, a breach below this level might trigger a retest of the $2 zone as previously indicated.
After bouncing off the lower trendline, WIF is edging towards the upper resistance. Staying above $2.50 could fuel further price growth, while a drop below this level might challenge the bullish outlook, leading WIF towards $2.20 or $2.00 zones.
Heatmap for Liquidation Risk
At the time of writing, dogwifhat was trading below $2.60, with approximately $675,000 worth of perpetual futures contracts facing liquidation around this price level.
A minor price increase to $2.70 could elevate liquidations to $790,000, indicating a potential target area. Market movements often align with high liquidity zones, possibly propelling WIF upwards.
Conversely, a drop to $2.40 might trigger liquidations totaling $824,000, potentially pushing the price down further towards $2.00. This scenario would also mark a retest of a previously broken double top pattern on the daily chart.
Growth in WIF Holder Numbers Amid Broader Market Recovery
Despite short-term uncertainties, traders are accumulating WIF, signaling a potential shift towards bullish sentiment. Recent data indicates a rise in the number of WIF holders across various time frames.
Presently, there are 189,350 holders of WIF, with over 56% of them holding more than $10 worth of the coin. This steady growth in holders, alongside minimal dips, suggests a positive market sentiment.
Given that meme coins heavily rely on community backing, this uptrend is encouraging for WIF’s long-term outlook. Furthermore, the wider market rebound in assets like Bitcoin, meme coins, and AI tokens enhances the potential for future gains in WIF.
As the meme coin sector continues to flourish, WIF appears to be a promising long-term investment. For investors seeking to capitalize on potential growth, gradually accumulating around the current price levels could be a strategic move, considering WIF’s favorable position for further appreciation.
Despite facing some short-term hurdles, the bullish outlook for dogwifhat remains intact. A breakout above $2.50 could lead to substantial gains, while a downside breach might prompt additional corrections.
Nevertheless, the increasing community support and growing number of holders indicate a positive long-term trajectory for WIF.