The WIF indicator successfully retested the bullish double bottom price action pattern.
$22 million worth of short positions will be liquidated if WIF breaks above $2.92.
At the time of publishing this report, the larger cryptocurrency market appears to be bullish due to the stellar performance of leading crypto assets in the last 24-48 hours. Needless to say, many meme coins in the market have also outperformed Bitcoin, with the popular Solana-based meme coin Dogwifhat (WIF) being one of them.
In fact, it appears that WIF has been sending a bullish signal on the price charts as well.
Why WIF is up 45%
Possible reasons behind WIF’s bullish outlook include a recent successful breakout retest, increasing open interest (OI), and Solana’s (SOL) ongoing price rally. According to on-chain analytics firm CoinGlass, in the last 24 hours, WIF’s OI value has increased by 2.2%, indicating growing interest among investors and traders.
In addition, SOL’s performance also affects the price of WIF. In the past seven days alone, SOL has seen a price increase of over 10%. The growing interest in Solana has led to greater interest in blockchain-based memecoins.
Dogwifhat (WIF) Stock Technical Analysis and Upcoming Levels
At the time of writing, the daily chart of WIF looks very interesting.
On the daily time frame, the WIF indicator not only anticipated a breakout of the bullish double bottom price action pattern, but also successfully retested it. In fact, it appeared to be moving in an uptrend – a potential bullish signal.
Source: TradingView
On the 4-hour time frame, WIF stock was trading above the 200 exponential moving average (EMA). When the price of an asset is above the 200 EMA, it is a sign of an upward trend. Based on the price action and historical data, if the market sentiment remains unchanged in the coming days, WIF stock price could surge an impressive 45% and reach $2.92 and $3.75 levels.
Here, it is worth noting that if WIF reaches the $2.92 level, more than $22 million of short positions on Binance alone will be liquidated. CoinGlass data revealed that in the past seven days, short sellers on Binance have created a massive $22 million short position because they believe that WIF will not reach the $2.92 level.
Source: CoinGlass
In addition to this technical analysis, a crypto analyst recently shared on X (formerly Twitter) that he believes WIF will soon hit $5 on the charts.