Is dogwifhat ready to soar? Why WIF can see a 22% rise

• WIF’s Open Interest (OI) has skyrocketed by 12% in the past 24 hours, indicating increased trader interest.
• 68.40% of top traders on Binance held long positions, while 31.60% held short positions.

After Solana’s [SOL] strong breakout, dogwifhat [WIF], the popular SOL-based memecoin followed suit and appeared poised for a notable upside rally in the coming days.

Apart from the bullish price action, other parameters that supported WIF’s bullish outlook are its on-chain metrics, and overall market sentiment. In fact, SOL’s recent gains over the past few hours could directly benefit WIF in its upcoming rally.

dogwifhat technical analysis and key levels 

According to AMBCrypto’s technical analysis, WIF has broken out from a descending triangle pattern on the four-hour time frame.

Currently, it appears that the meme coin could break out of a bullish double-bottom pattern.

Source: TradingView

Following the breakout and a candle closing above the key resistance level, there is a strong possibility that WIF could soar by 22%. This might allow the memecoin to reach the $4.7 level in the coming days.

As of press time, the memecoin was trading above the 200-day Exponential Moving Average (EMA), indicating an uptrend.

Meanwhile, WIF’s Relative Strength Index (RSI) suggested a potential upside rally in the coming days, as its value was in the oversold territory.

Bullish on-chain metrics 

Besides technical analysis, metrics further supported WIF’s bullish outlook.

Per AMBCrypto’s look at Coinglass, the memecoin’s Open Interest (OI) has skyrocketed by 12% in the past 24 hours and 11.08% in the past four hours. This suggested significant trader interest in the memecoin.

Source: Coinglass

Additionally, WIF’s Long/Short Ratio on Binance stood at 2.16 at press time, indicating strong bullish market sentiment.

At press time, 68.40% of top traders on Binance held long positions, while 31.60% held short positions. WIF was trading near $3.91 after a price surge of over 4.5% in the past 24 hours.

Realistic or not, here’s WIF’s market cap in BTC’s terms

Considering these on-chain metrics and the technical analysis of dogwifhat, it appears that bulls are currently dominating the asset and could support the token in its upcoming rally.

However, WIF’s trading volume dropped by 10% in the last 24 hours, indicating lower participation from traders and investors.