Dogwifhat (WIF), a Solana-based memecoin, experienced a significant 24% price drop from $1.12 to $0.85 over two days coinciding with Bitcoin's (BTC) dip from $108k to $104k in late May. Despite bearish momentum on lower timeframes and dwindling trading volume in recent weeks, WIF displayed signs of recovery and maintained a bullish market structure on the daily chart, staying above key support levels like the 50-day moving average.
Over the past 24 hours, a 3.1% rally in the memecoin sector further supported WIF’s bounce back as Bitcoin rebounded. Traders are advised to consider long positions, using the recent dip as a buying opportunity with a stop-loss below $0.76. However, caution remains given some bearish signals on shorter timeframes.
Complementing the recovery, WIF’s price surged by over 250% from its April lows, forming a rare and bullish cup-and-handle pattern on the daily chart. This technical formation suggests potential for a significant upside, with the price target estimated at $2.39, indicating a possible 130% rally from current levels.
Fundamental indicators reinforce optimism: WIF’s daily network growth jumped dramatically to over 5,000 new addresses; funding rates turned positive signaling growing trader confidence; and the number of WIF holders increased steadily to more than 236,000. Additionally, a negative exchange inflow/outflow ratio implies investors are withdrawing tokens from exchanges to hold, supporting price strength. Futures open interest also increased, reaching $398 million.
Together, these factors highlight strong technical and fundamental reasons for a bullish outlook on WIF in the near term, marking it as a noteworthy memecoin with growing market traction.