Dogwifhat (WIF), a popular Solana-based meme coin, has surged 335% from its April lows, hitting a peak of $1.3142 on Tuesday. This rally boosted its market cap to $1.07 billion, positioning it as the fourth-largest Solana meme coin after Official Trump, Bonk, and Fartcoin.
However, recent on-chain data suggests that the bullish momentum may be fading. According to Nansen, the number of WIF tokens held on exchanges increased by 1.67% in the past week, rising from 564.35 million to 573.80 million tokens. This spike pushed the exchange supply to 57.20%, up from 56.26%, indicating that investors are starting to take profits.
Additionally, holdings by smart money investors have decreased to 23.5 million, down from 24 million earlier this year. The trend suggests that experienced traders are cashing out, possibly anticipating a price correction.
Technical Analysis: Overbought Signals Emerging
Dogwifhat has seen a strong uptrend since bottoming out at $0.3027 in April. It formed a rounded bottom pattern, a bullish signal, and broke above the 50-day moving average, indicating renewed interest.
However, the Relative Strength Index (RSI) has surged above 80, a level considered overbought, suggesting that a pullback could be imminent. The MACD indicator also shows both lines at their highest levels since April 2024, signaling potential selling pressure.
If Dogwifhat fails to hold the immediate support at $1.0815, the next key level to watch will be the 50% Fibonacci retracement at $0.6493, which could act as a buffer in the event of further profit-taking.
