- WIF has successfully retested its bullish double bottom price action pattern
- $22 million in short positions will be liquidated if WIF crosses the $2.92 level
At the time of writing, the larger cryptocurrency market was looking bullish due to the impressive performance of the top crypto assets over the past 24-48 hours. Needless to say, many of the memecoins on the market also took the lead from Bitcoin, with the popular Solana-based memecoin Dogwifhat (WIF) being one of them.
In fact, WIF also seemed to send a bullish signal on the price charts.
The reason WIF could increase by 45%
The possible reasons behind WIF’s bullish outlook include the recent successful breakout retest, a rise in open interest (OI), and continued price appreciation in Solana (SOL). According to on-chain analytics firm CoinGlass, WIF’s OI value has increased by 2.2% over the past 24 hours, indicating growing interest among investors and traders.
Moreover, the performance of SOL also affects the price of WIF. In the last seven days alone, SOL has registered a price increase of more than 10%. The greater interest in Solana has translated into greater interest in memecoins based on the 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 predicted a breakout of a bullish double bottom price action pattern but also successfully retested it. In fact, it appeared to be moving in an upward direction – a potentially bullish signal.
Source: TradingView
Within a four-hour time frame, WIF traded 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 market sentiment remains unchanged in the coming days, WIF’s price could rise an impressive 45% to reach the $2.92 and $3.75 levels.
Here it is worth pointing out that if WIF reaches the $2.92 level, more than $22 million worth of short positions will be liquidated on Binance alone. CoinGlass data shows that Binance short sellers have created a massive $22 million short position in the last seven days as they believe 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 reach $5 on the charts.