Dogwifhat (WIF), the leading meme coin on Solana, now shows potential for an upward rally as it has formed a bullish price action pattern on the four-hour time frame. It has been nearly three days since significant upward momentum has been observed across most cryptocurrencies. Meanwhile, WIF has remained stable with no major price fluctuations.
Dogwifhat (WIF) Technical Analysis and Key Levels
Today, November 9, 2024, WIF reached a crucial level with a 2.5% price gain.
According to expert technical analysis, WIF has been experiencing a price decline since mid-October, during which it continuously faced resistance from a descending trendline. With the recent price surge, the meme coin has once again reached the resistance level. Due to the bullish market sentiment across the cryptocurrency industry, it appears that WIF may breach this resistance level this time.
Based on technical analysis and historical price momentum, if the meme coin breaches this resistance level and closes a daily candle above the $2.5 mark, there is a strong possibility that WIF could rise by 20% to reach the $3.05 level in the coming days.
Currently, WIF is facing resistance from the trendline and the 200 Exponential Moving Average (EMA) on the daily time frame, indicating that the asset is in a downtrend.
Bullish On-Chain Metrics
However, the on-chain metrics of the meme coin suggest a bullish outlook. According to the on-chain analytics firm Coinglass, WIF’s long/short ratio currently stands at 1.05, indicating strong bullish sentiment among traders. Additionally, its open interest has increased by 3.6% over the past 24 hours and by 2.8% over the past four hours.
This rising open interest indicates growing participation and the formation of new positions in the WIF meme coin. However, based on the long/short ratio, it appears that the majority of positions are on the long side.
Rising open interest and a long/short ratio above 1 indicate a bullish signal. Additionally, traders and investors often rely on these metrics when establishing long positions.
Current Price Momentum
At press time, WIF is trading near $2.35 and has experienced a price decline of 5.3% over the past 24 hours. During the same period, its trading volume has increased by 4.9%, indicating rising participation from traders and investors.
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