Key Takeaways
- WIF’s price has surged over 180% in the last 30 days, breaking past $1.20 for the first time since January
- Its realized price remains at $1.30, suggesting accumulation and a potential uptrend continuation.
- The trading volume has rebounded to nearly $1 billion, strengthening the bullish thesis after a brief dip.
- The CMF has climbed to 0.25, and the Supertrend indicator remains bullish, implying that WIF could rally to $2
Formerly written off, Solana-based memecoin dogwifhat (WIF) has returned with explosive price action. In the past 30 days, the WIF crypto price has increased by 180%, and has surged past $1 for the first time since Jan. 31.
WIF trades around $1.20, making it the second-best-performing crypto within 24 hours. Despite the massive increase, the memecoin appears not ready to let go of the rally.
Instead, on-chain analysis and the technical outlook show that it could be ready to take another significant step up. Here is why.
WIF Still Undervalued
To assess WIF’s potential in the coming days, CCN examined its realized price. Also known as the on-chain cost basis, this metric represents the average price at which all circulating coins last moved.
Typically, a rising realized price indicates that coins are being accumulated at higher values. On the other hand, a decline suggests buyers are entering at lower prices.
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According to data from Glassnode, WIF’s current price is around $1.18, while its realized price stands at $1.30 — a notable drop from over $2 months ago.
This divergence, where realized price falls and market price rises, indicates fresh accumulation at lower costs and hints at growing bullish momentum. Historically, WIF hits a local top when the price exceeds the realized price.
Hence, if this trend continues, it could support further upside for WIF in the short term.
Memecoin Barking Loud Again
Beyond this, data from Santiment shows that WIF’s volume has spiked. Earlier today, the volume dropped below $500 million.
But within a few hours, it has inched closer to $1 billion. From a trading point of view, the decline in volume alongside the rising price initially indicated that the uptrend was weakening.
The market value might keep soaring since the volume is back up, and the WIF crypto price has yet to retrace.
WIF Price Analysis: More Gains Ahead
Looking at the daily chart, WIF broke out after the memecoin surged past the upper trendline of the symmetrical triangle. At the same time, CCN observed that the Chaikin Money Flow (CMF) rose to 0.25.
The CMF breaking above the zero signal line indicates rising buying pressure. If this continues, WIF’s price might climb higher than the resistance at $1.26.
Like the CMF, the Supertrend supports an extended rally, particularly because the green line is below the price. As long as the red line of the indicator does not rise above WIF, the value might hit $2 at the 0.618 golden ratio.
On the contrary, if the memecoin gets extremely overbought and selling pressure rises, this prediction might not pass. In that scenario, WIF’s price might decline below $0.75 in the short term.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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