- On-chain metrics revealed that crypto exchanges have seen outflows of $15.9 million
- Despite long-term holders’ interest, intraday traders appeared hesitant to build new positions
Dogwifhat (WIF), the popular Solana-based memecoin, has been showing signs of potential recovery after recording a price drop of +32% over the past week. Meanwhile, other major assets, including Bitcoin (BTC), Ethereum (ETH), and XRP, have struggled to gain some momentum, with each one of them at the risk of another price decline.
WIF’s price momentum
At press time, WIF was trading near $1.85, having recorded a price decline of over 3.10% in the last 24 hours. However, during the morning trading hours, the decline was significant. And, rising traders’ interest and confidence helped the memecoin recover from $1.80 to the $1.85-mark.
Despite this recovery, traders and investors remain cautious though. In fact, this caution has resulted in a 16% decline in trading volume during the same period.
Dogwifhat (WIF) technical analysis and key levels
According to AMBCrypto’s technical analysis, WIF appeared bullish as it recently found crucial support at the $1.80-mark and started moving in an upward direction. In addition to the support, the memecoin formed a descending triangle price action pattern on the daily timeframe and seemed poised for a breakout.
Source: Trading View
WIF price prediction
Based on its recent price action, WIF was trading within a narrow range of the pattern at press time. If it breaches and closes a four-hour candle above the $1.945-mark, there may be a strong possibility that it could soar by 20%, hitting the $2.32-level in the near future.
On the positive side, WIF’s Relative Strength Index (RSI) seemed to be below the overbought zone – A sign of a potential price recovery.
However, WIF’s bullish outlook will only remain valid if it breaks out of the pattern and closes a four-hour candle above $1.945. Otherwise, it may fail to sustain its recovery on the charts. .
On-chain metrics share mixed sentiments
In addition to WIF’s bullish outlook, traders and investors have shown strong interest in the memecoin, as reported by the on-chain analytics firm Coinglass.
Source: Coinglass
In fact, data from WIF’s spot inflow/outflow revealed that cryptocurrency exchanges have seen outflows of a significant $15.9 million worth of WIF memecoins. This alluded to a potential upside rally and an ideal buying opportunity.
Despite long-term holders accumulating the memecoin, however, intraday traders might be hesitant to build new positions. This was evidenced by WIF’s Open Interest dropping by 4% in 24 hours – Indicative of the liquidation of traders’ positions.
