A 17% increase in Dogwifhat in 24 hours: Can WIF bulls reach $5 in the next phase?
Dogwifhat recorded a double-digit price increase in the past 24 hours, which could soon bring the memecoin to $5.
Market sentiment around memecoins turned bullish.
- There was a possibility of a price correction as the RSI for WIF was on the verge of entering the overbought zone.
Dogwifhat [WIF] displayed impressive performance in the past 24 hours. This also allowed the memecoin to move toward a new target. Therefore, AMBCrypto planned to assess the on-chain data of the memecoin to determine its next move.
Dogwifhat is breaking out.
Data from CoinMarketCap showed that WIF bulls had an outstanding performance in the past 24 hours, boosting the memecoin’s price by over 18%.
At the time of writing, WIF was trading at $2.65 with a market capitalization of over $2.6 billion, making it the thirty-fifth largest cryptocurrency.
Thanks to the recent price surge, the weighted sentiment for the memecoin returned to positive territory. Whenever this happens, it indicates that bullish sentiment around an asset is high. However, this did not impact the specific dominance of Dogwifhat, which had been relatively low in recent days.
Source: Santiment
Although social dominance was low, the price increase drove WIF toward a new target. World Of Charts, a popular cryptocurrency analyst, tweeted about this development.
According to this tweet, Dogwifhat broke above another trend line. The latest breakout indicates that the memecoin may target $5 in the coming days.
Future Targets for WIF
AMBCrypto then looked at the on-chain metrics of Dogwifhat to see if they support the possibility of targeting the $5 memecoin.
Based on our analysis of Santiment data, after a decline, WIF’s trading volume has increased in recent hours, serving as a foundation for a bullish rally.
Additionally, open interest in WIF has also risen. The increase in this metric suggests that the likelihood of a continued price trend is high.
Source: Santiment
The WIF MACD technical indicator showed a bullish trend in the market. If the upward trend continues, it is crucial for WIF to move above a few more resistance levels before targeting $5. Specifically, the next target may be $2.8.
A successful breakout above this level could push Dogwifhat to $3.7. After the memecoin bounces from that mark, its path toward $5 may become clearer. However, not everything is favorable for the memecoin.
For example, the Relative Strength Index (RSI) is on the verge of entering the overbought zone. If this occurs, it wouldn’t be surprising to witness a price correction.
In the event of a bearish takeover, WIF may decline back to $1.9.
Source: TradingView
