WIF Price at Risk as Dogwifhat Exchange Inflows Rise and Smart Money Withdraws
Dogwifhat’s price has seen a remarkable rise in recent weeks, reflecting patterns observed in various other Solana meme coins.
The Dogwifhat (WIF) token achieved a high of $1.3142 on Tuesday, representing a 335% increase from its lowest level in April. This rise has boosted its market capitalization beyond $1.07 billion, making it the fourth-largest Solana meme coin, trailing only Official Trump (TRUMP), Bonk (BONK), and Fartcoin (FARTCOIN).
On-chain data suggests that WIF might face a pullback soon. A noteworthy indicator is the increasing number of tokens on exchanges, signaling that some investors may be realizing profits by selling their holdings.
The count of tokens on exchanges rose by 1.67% to 573.80 million, up from 564.35 million in the previous week. This increase has adjusted the exchange supply to 57.20%, compared to 56.26% the week before.
Additional data from Nansen shows that institutional investors have been selling off their WIF tokens. Their holdings have decreased to 23.5 million, down from over 24 million earlier this year.
Generally, smart money investors tend to exit their positions when they foresee a potential price correction based on past experiences.
WIF Price Technical Analysis
The daily chart illustrates that Dogwifhat began a notable downtrend in November after hitting a peak of $4.80. It fell to a low of $0.3027 in April before initiating a slow ascent, reaching a peak of $1.3115 on Tuesday.
The WIF token has formed a rounded bottom pattern, a typical bullish continuation signal. Moreover, it has exceeded the 50-day moving average, indicating a positive development.
Nonetheless, there are signs that the token may currently be in overbought territory. The Relative Strength Index is above 80, and the two lines of the MACD indicator have risen to their highest levels since April of last year.
Dogwifhat is also encountering substantial resistance at $1.0815, which was the lowest swing point recorded in August. Consequently, while the long-term outlook remains optimistic, a slight pullback appears likely as investors take profits. If this happens, the next key level to watch will be the 50% retracement point at $0.6493.