- Market sentiment around the memecoin turned bullish.
- There were chances of a price correction as WIF’s RSI was about to enter the overbought zone.
dogwifhat [WIF] has showcased impressive performance in the last 24 hours. This also allowed the memecoin to move towards a new target. Therefore, AMBCrypto planned to assess the memecoin’s on-chain data to find out its next move.
dogwifhat is breaking out
CoinMarketCap’s data revealed that WIF bulls performed extraordinarily well in the past 24 hours as they pushed the memecoin’s price up by more than 18%.
At the time of writing, WIF was trading at $2.65 with a market capitalization of over $2.6 billion, making it the 35th largest crypto.
Thanks to this latest price increase, the memecoin’s weighted sentiment entered the positive zone again. Whenever that happens, it indicates that bullish sentiment around an asset is high.
However, this didn’t have an impact on the dogwifhat’s special dominance, which remained relatively low during the last few days.
Source: Santiment
Though the social dominance remained low, the price increase did push WIF towards a new target. World Of Charts, a popular crypto analyst, posted a tweet revealing this development.
As per the tweet, dogwifhat broke above yet another trend line. The latest breakout indicated that the memecoin might next target $5 in the coming days.
WIF’s upcoming targets
AMBCrypto then took a look at dogwifhat’s on-chain metrics to see whether they support the possibility of the memecoin targeting $5.
As per our analysis of Santiment’s data, after a dip, WIF’s trading volume increased in the past few hours, acting as a foundation for the bull rally.
Additionally, WIF’s open interest also increased. A rise in the metric hints that the chances of the on-going price trend continuing are high.
Source: Santiment
WIF’s technical indicator MACD displayed a bullish upper hand in the market. If the uptrend continues, it will be crucial for WIF to go above a few more resistance zones before targeting $5. To be precise, the next target might be $2.8.
A successful breakout above that mark could push dogwifhat to $3.7. After the memecoin jumps above that mark, its road towards $5 might get clear. However, not everything was in the memecoin’s favor.
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For instance, the Relative Strength Index (RSI) was about to enter the overbought zone. If that happens, then it won’t be surprising to see a price correction.
In the event of a bearish takeover, WIF might once again drop to $1.9.
Source: TradingView