Dogwifhat price has rallied prior to now few weeks, aligning with the efficiency of most Solana meme cash.
Dogwifhat (WIF) token rose to a excessive of $1.3142 on Tuesday, up by 335% from its lowest degree in April. This rebound has pushed its market capitalization of over $1.07 billion, making it the fourth-biggest Solana meme coin after Official Trump (TRUMP), Bonk (BONK), and Fartcoin (FARTCOIN).
Onchain information exhibits that WIF might quickly retreat. One metric is the rising variety of tokens on exchanges in latest days, an indication that some traders have began taking earnings by promoting their holdings.
Tokens on exchanges rose 1.67% to 573.80 million, up from 564.35 million throughout the identical interval final week. This enhance pushed the exchange provide as much as 57.20%, from 56.26% every week in the past.
Further Nansen information exhibits that smart money traders have continued offloading their WIF tokens. Holdings by these traders have dropped to 23.5 million, down from over 24 million earlier this yr.
Smart money traders sometimes exit their positions after they count on a price reversal, based mostly on their expertise.
WIF price technical evaluation
The every day chart exhibits that Dogwifhat began a powerful downtrend in November when it peaked at $4.80. It bottomed at $0.3027 in April earlier than starting a gradual uptrend, peaking at $1.3115 on Tuesday.
The WIF token shaped a rounded backside, a well-liked bullish continuation signal. It additionally moved above the 50-day shifting common, a constructive transfer.
Nevertheless, there are indicators that the token is now extremely overbought. The Relative Energy Index has risen above 80, and the 2 strains of the MACD indicator have jumped to their highest ranges since April of final yr.
Dogwifhat has additionally encountered substantial resistance at $1.0815, the bottom swing in August. Subsequently, whereas the long-term outlook stays bullish, a slight pullback is probably going as traders take earnings. If that occurs, the following degree to look at would be the 50% retracement level at $0.6493.
