Dogwifhat (WIF) has produced monthly gains of 184% and has already surpassed the psychological $1 threshold.
Solana meme coins as a whole have surged in the past 30 days, led by Fartcoin (FARTCOIN), whose rally have faded at this point, but also by latecomers like Pudgy Penguins (PENGU) and Peanut the Squirrel (PNUT), which have produced gains of 204% and 172% respectively during this same period.
Analysts attribute these tremendous rallies to a heavily one-sided market as short-sellers accumulated a huge amount of short positions against these assets and set the stage for a massive squeeze.
Trading volumes have surged recently as a large number of short orders have been blown up. To close these orders, short sellers must buy the asset. At a point when the market is surging and trading volumes are skyrocketing, closing large positions becomes increasingly more expensive.
Meanwhile, as investors see these meme coins ripping, they are overwhelmed by the fear of missing out (FOMO) and push prices even higher, triggering a loop where more buying pressure causes higher prices and higher prices cause even higher demand.
Dogwifhat (WIF) Could Retest its Nearest Support at $0.945 Shortly
Looking at WIF latest price action, the 1-hour chart shows that the price peaked at around $1.30 and this retreated triggered some significant selling that even pushed the price below the $1 level at some point.
Meanwhile, buyers showed up to scoop up WIF at $0.945, making this the key support level to watch in the next few hours.
However, the selling pressure has pushed the 21-hour EMA near the 50-hour EMA. This is bearish signal known as a ‘death cross’ that tends to be followed by a reversion to the long-term mean. In this case, the 200-hour EMA.
This happened already at $0.945 and the market could now retest this level to see if there is enough demand at that price point to push WIF higher and break its nearest resistance.
If the price fails retest that high in the next few hours, the odds favor a bearish push to the $0.95 level to retest that support. The odds of a bearish breakout will increase with this second tag and traders should keep an eye at a bearish breakout as it could result in a significant decline in the near term.
In contrast, if the price does make a higher high after this 200-hour EMA bounce, it will confirm a bullish outlook that could lead to WIF rallying further during the weekend.
So, which other tokens could deliver similar gains and how can investors take advantage of this recent shift in market sentiment?
The best crypto presales like Solaxy (SOLX) offer the highest upside potential at a point when late buyers are looking for the next cryptocurrency to 10X.
Solaxy (SOLX) Presale Enters Last Stage with $36M Raised – Don’t Miss Out
Solaxy (SOLX) is a layer-two scaling protocol that fixes Solana’s congestion issues by bundling transactions offline in a side chain.
Back in January when TRUMP and MELANIA were launched, Solana users and exchanges experienced delays and transaction errors that affected the network’s reputation.
Solaxy comes to strengthen the blockchain’s architecture by alleviating the mainnet’s burden.
Once Solaxy is embraced by top wallets and exchanges, the demand for its utility token, $SOLX, will skyrocket.
In addition to the significant upside potential that $SOLX currently offers, its staking rewards are also quite attractive at 111%.
To buy $SOLX before its presale ends, head to the Solaxy website and connect your wallet. You can either swap SOL or USDT for this token or use a bank card to make your investment.
