Key Takeaways
- WIF’s price is now approaching $1, having broken above the $0.88 resistance level.
- Volume surged nearly 100% to $436.87 million, increasing buying pressure.
- Unless demand drops, WIF may break resistance, with possible targets at $1.72 and $2.
Despite losing its top spot among Solana memecoins, dogwifhat (WIF) has outshone most of its rivals over the past 24 hours. Within this period, WIF’s price has increased by 15%.
The memecoin is now on the verge of reclaiming $1, a level it fell below over the weekend. In this analysis, CCN breaks down the factors behind WIF’s early June bounce. We also reveal what could be next for the token.
WIF Reclaims Spotlight
According to the 4-hour chart, WIF broke above the $0.88 resistance as bullish momentum intensified. Buyers firmly defended the $0.80 support level, pushing against bearish pressure.
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This shift in sentiment is also evident in the Chaikin Money Flow (CMF), which tracks accumulation (buying pressure) and distribution (selling pressure).
A rising CMF indicates substantial buying volume. On the other hand, a decline points to increasing sell-offs, and in WIF’s case, the indicator leaned bullish.
Besides that, we noticed a change in the Awesome Oscillator (AO) position. Before the WIF price increase, the AO was deep in the negative region, indicating bearish momentum.
But as of this writing, the indicator has consistently flashed green histogram bars, indicating that the momentum is moving from bearish to bullish.
If sustained, the WIF memecoin might keep ascending and probably breach the resistance at $1.03.
From an on-chain perspective, WIF’s trading volume has jumped by over 100%. Yesterday, the volume was slightly over $240 million.
As of this writing, it has increased to $436.87 million. The rise in trading volume alongside WIF’s price indicates that buying pressure has outpaced sellers’ presence.
If sustained, this could add upward pressure to the memecoin. In that scenario, the market value of the cryptocurrency might climb much higher in the coming days.
WIF Price Analysis: Rally Gains Strength
On the daily chart, WIF’s price resisted hitting lower lows. As a result, the structure seems to be forming an ascending channel.
If sustained, the memecoin will likely break past $1 soon. In addition to that, the Relative Strength Index (RSI) has crossed above the neutral line, indicating rising bullish momentum.
Should this trend remain the same, WIF’s price might break the resistance at $1.10. If successful, the next target for the memecoin could be a rally toward $1.72 near the 0.618 golden ratio.
In a situation that drives higher buying pressure, the cryptocurrency might reach $2. However, if bullish momentum fades, WIF’s price might slide below the lower trendline of the ascending channel.
If that were to happen, the token might drop to the underlying support at $0.56. In a highly bearish market condition, it could decline to $0.30.
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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