The meme coin frenzy continues to captivate crypto enthusiasts, with Dogwifhat (WIF) emerging as the latest sensation. This Solana-based token has surged to become the fifth-largest meme coin by market capitalization, boasting an impressive $2.2 billion valuation.
While the uptrend has been remarkable, technical indicators suggest potential turbulence ahead for WIF bulls. The 4-hour chart reveals a divergence between the price and the On-Balance-Volume (OBV) indicator. Despite higher highs in price, the declining OBV signals waning buying pressure, raising the possibility of a pullback.
Potential support levels for a retracement have been identified at $1.63, $1.48, and $1.27, with the $2 area acting as a crucial demand zone. A breach below $2 could increase the likelihood of a continued slump.
However, sentiment surrounding WIF remains optimistic. The Open Interest has been making higher lows, and the spot CVD indicates that buyers currently hold the upper hand, albeit with slowing momentum near the $2.4 level.
As the meme coin craze unfolds, the $2 support level for WIF could prove pivotal in the coming days, determining whether the bulls can maintain their momentum or face a temporary setback. Regardless of the short-term price action, the rise of WIF has caught the attention of traders and investors alike, potentially sparking greater interest in the Solana ecosystem.
