Why Dogwifhat Could Surge by 155%
The value of Dogwifhat has surged for the second consecutive day, propelled by a rise in Bitcoin and various Solana meme tokens.
The Dogwifhat (WIF) token reached around $0.92 on July 3, reflecting a 43% rise from its lowest level this week. Other prominent Solana (SOL) meme tokens like Bonk, Fartcoin, and Pudgy Penguins have also demonstrated signs of recovery.
On-chain analytics suggest that WIF could have further growth potential, as there has been notable accumulation by whale investors. Data from Nansen indicates that Dogwifhat whales now hold 39 million tokens, an increase from 38.4 million last month, marking the highest level since June 28. This trend implies that larger holders are expecting ongoing upward momentum.
Furthermore, analysis reveals that the top 100 addresses have increased their holdings in recent weeks, now controlling over 771 million WIF tokens, compared to 746 million in June.
Additionally, WIF holders are moving tokens off exchanges, usually signaling a long-term commitment. Exchange balances have declined by 2% over the past month, now totaling 581 million tokens.
Looking forward, the price of Dogwifhat is expected to benefit from a potential crypto bull run in the latter half of the year. Key drivers for this rally could include anticipated interest rate cuts by the Federal Reserve, increasing institutional interest, and the SEC’s possible approval of spot exchange-traded funds.
WIF price shows bullish signals
The daily chart indicates that additional gains may be forthcoming. WIF has surpassed its 50-day Exponential Moving Average, signaling a strengthening bullish trend.
Moreover, the token has broken free from a falling wedge, a bullish reversal pattern featuring two descending, converging trendlines. The price has clearly breached the upper boundary of the wedge.
Dogwifhat is also developing a classic cup-and-handle pattern, with the top edge of the cup at $1.34 and the base near $0.3185. The depth of the cup is approximately 76.26%, with the falling wedge forming the handle portion of the pattern.
The projected breakout target from this formation suggests the next significant resistance level at $2.37, approximately 155% above the current price. A bullish confirmation is anticipated if WIF surpasses the rim of the cup at $1.3473.