Solana-based memecoins are doing well. Can they do better though?
- WIF successfully retested its bullish double-bottom price action pattern $22 million worth of short positions will be liquidated if WIF crosses the $2.92 level
At press time, the larger cryptocurrency market looked bullish due to the impressive performances of top crypto assets in the last 24-48 hours. Needless to say, many of the market’s memecoins took the lead of Bitcoin too, with popular Solana-based memecoin Dogwifhat (WIF) being one of them.
In fact, WIF seemed to be flashing a bullish signal on the price charts too.
The reason WIF could soar by 45%
The potential reasons behind WIF’s bullish outlook include the recent successful breakout retest, an increase in open interest (OI), and a sustained price surge in Solana (SOL). According to on-chain analytics firm CoinGlass, in the last 24 hours, WIF’s OI value has risen by 2.2%, signaling growing interest among investors and traders.
Additionally, the performance of SOL is also affecting WIF’s price. In the last 7 days alone, SOL has registered a price surge of over 10%. Greater interest in Solana has translated to greater interest in memecoins based on its blockchain.
Dogwifhat (WIF) technical analysis and upcoming levels
At the time of writing, WIF’s daily chart looked super interesting.
On the daily time frame, WIF not only projected a breakout of a bullish double-bottom price action pattern, but also successfully retested it. In fact, it seemed to be moving in an upward direction – A potentially bullish signal.
Source: TradingView
On the 4-hour time frame, WIF was trading above the 200 Exponential Moving Average (EMA). If the price of an asset is above the 200 EMA, it is a sign of bullishness. Based on the price action and historical data, if the market sentiment remains unchanged in the coming days, then WIF’s price may soar impressively by 45% and hit its $2.92 and $3.75 levels.
Here, it’s worth pointing out that if WIF hits the $2.92 level, over $22 million worth of short positions will be liquidated on Binance only. CoinGlass’ data revealed that in the last 7 days, Binance’s short sellers created a massive $22 million short positions as they think 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 thinks WIF will soon hit $5 on the charts.
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