The meme coin dogwifhat [WIF], which is built on the Solana blockchain, seems ready to see a rise in value after a period of consolidation lasting three weeks.
It appears that WIF is garnering support from investors who are in it for the long term, resulting in a breakout from the recent consolidation phase and hinting at a potential upward movement in the days ahead.
Significant $94 Million WIF Withdrawal from Exchanges
The breakout in the price of WIF coincided with a notable outflow of funds from exchanges, as per data from the analytics company Coinglass.
Throughout the consolidation phase, there was a consistent flow of funds out of exchanges, culminating in a substantial withdrawal of $93.80 million in WIF from trading platforms.
This movement indicates that investors holding WIF for the long term have moved $93.8 million worth of the cryptocurrency from exchanges to their personal wallets. This action could present a buying opportunity, lessen the risk of selling pressure, and indicate the possibility of an upward price movement.
WIF Technical Analysis and Key Levels
According to analysis by CryptoCrypto, WIF has broken out of its extended consolidation phase but is facing challenges in closing daily trading candles above this level.
Based on recent price movements, if WIF can successfully close a daily candle above the $3.5 mark, there is a strong chance it could surge by 30% and reach $4.7 in the near future.
Positively, WIF’s Relative Strength Index (RSI) is currently at 53, below the overbought threshold of 70, indicating a potential rally in the days ahead for this meme coin.
Moreover, WIF is trading above the 200 Exponential Moving Average (EMA) on both the four-hour and daily charts, signaling an uptrend.
Bullish Sentiment Among Binance Traders
Further boosting this optimistic technical outlook are Binance traders, as reported by Coinglass. The Long/Short ratio for WIF on Binance stands at 4.24 currently, reflecting strong bullish sentiment among traders.
Furthermore, 80.93% of top Binance traders are holding long positions in WIF, while only 19.07% have opted for short positions.
With these on-chain metrics and technical analysis aligning, it seems that bulls are in control of WIF at present and could play a role in supporting the coin’s upcoming surge.
At the time of reporting, WIF was trading around $3.41 and had seen a price increase of over 4.05% in the last 24 hours. The trading volume during this period rose by 25%, indicating increased trader interest following the recent price breakout.