Dogwifhat price has rallied in the past few weeks, aligning with the performance of most Solana meme coins.
Dogwifhat (WIF) token rose to a high of $1.3142 on Tuesday, up by 335% from its lowest level in April. This rebound has pushed its market capitalization of over $1.07 billion, making it the fourth-biggest Solana meme coin after Official Trump (TRUMP), Bonk (BONK), and Fartcoin (FARTCOIN).
Onchain data shows that WIF may soon retreat. One metric is the rising number of tokens on exchanges in recent days, a sign that some investors have started taking profits by selling their holdings.
Tokens on exchanges rose 1.67% to 573.80 million, up from 564.35 million during the same period last week. This increase pushed the exchange supply up to 57.20%, from 56.26% a week ago.
Additional Nansen data shows that smart money investors have continued offloading their WIF tokens. Holdings by these investors have dropped to 23.5 million, down from over 24 million earlier this year.
Smart money investors typically exit their positions when they expect a price reversal, based on their experience.
WIF price technical analysis
The daily chart shows that Dogwifhat started a strong downtrend in November when it peaked at $4.80. It bottomed at $0.3027 in April before beginning a slow uptrend, peaking at $1.3115 on Tuesday.
The WIF token formed a rounded bottom, a popular bullish continuation sign. It also moved above the 50-day moving average, a positive move.
However, there are signs that the token is now highly overbought. The Relative Strength Index has risen above 80, and the two lines of the MACD indicator have jumped to their highest levels since April of last year.
Dogwifhat has also encountered substantial resistance at $1.0815, the lowest swing in August. Therefore, while the long-term outlook remains bullish, a slight pullback is likely as investors take profits. If that happens, the next level to watch will be the 50% retracement point at $0.6493.
