Dogwifhat is on the uptrend after it briefly lost its $1 status on Tuesday. It saw massive increases following the rebound and erased the previous day’s loss.
The memecoin halts its seven-day downtrend as the bulls buyback. However, the slip to $0.97 is unsurprising, as a previous analysis pointed out. While asserting that the asset may be rangebound for an extended period, it hinted at further downtrends as RSI was on the downtrend.
The article added that the bollinger band shows the altcoin edging closer to the lower SMA. It concluded that it may hit the metric at $0.96 before rebounding.
Dogwifhat rebounded as predicted on Tuesday. It recovered from a dip that started after it started the day at $1.18. However, it closed with losses exceeding 10%. Recovery started after it tested the Bollinger band lower band.
Wednesday is off to a good start as the asset prints its largest green candle in over fourteen days. It started the day at $1.05, shot up, and broke the $1.30 resistance. Currently trading at $1.34, the memecoin is up by over 27% at the time of writing.
The downtrend, which started on Jan. 18 after its failed attempt at $2, comes to an end. It has since lost over 45% but erased half of the losses.
Why is WIF Up?
The accumulation and distribution reveal massive buying action. The metric is rising after almost a month of declines, indicating the return of notable buying interest in the asset. The latest reading matches the relative strength index. The metric is on the uptrend and trends at 41 after rebounding at 29 a few days ago.
One such action comes from popular trader Ansem. Lookonchain recently announced that he resumed buying after a three-month break. He purchased 915,828 tokens for 1.2 million USDC. The latest purchase reflects more interest from the whales. The trend may continue as bullish sentiment returns to the crypto market.
Data from Coinmarketcap reveal a massive increase in trading volume. It almost tripled in the last 24 hours as the bulls flooded the market. A closer look at interactions with WIF on the platform and X shows investors’ optimism.
What’s Next for Dogwifhat?
The one-day chart shows that the asset may continue upwards. It bounced off Bollinger’s lower band. The rebound heralds significant price increases, as seen in previous trends. Previous price movement points to the asset reclaiming the middle band before retracement. This means the asset will reclaim $1.50 before correction.
The asset may consolidate around the highlighted mark before a breakout. However, worsening market sentiment may send prices lower.
Nonetheless, previous price movements suggest the asset may edge closer to $2—the Bollinger band supports this claim as the upper band lies close to this mark. Currently trading above the 100% Fibonacci retracement level, it will edge closer to breaking the 78% mark at $2.
At the time of writing, the moving average convergence divergence prints buy signals. The 12-day EMA is in contact with the 26-day EMA, completing its bullish convergence. A divergence will follow, indicating further price increases.
In other developments, Solana is rising. Fueled by the notable increase in memecoin trading, it trades at $231, 2% higher than its opening price.
