Dogwifhat (WIF), a prominent Solana-based meme coin, has seen a sharp rebound, rising by 335% from April lows to reach a high of $1.3142 on Tuesday. This rally propelled its market cap to over $1.07 billion, ranking it just behind Official Trump, Bonk, and Fartcoin in the Solana meme coin category.
Despite the rally, recent data indicates a potential pullback as exchange holdings increase and smart money exits. On-chain data shows that the number of WIF tokens on exchanges climbed 1.67%, up from 564.35 million to 573.80 million tokens in just one week. This increase raised the overall exchange supply to 57.20%, a signal that some holders may be preparing to sell.
Further, Nansen data reveals that smart money investors have reduced their WIF holdings to 23.5 million, down from 24 million earlier in the year. The trend suggests that experienced traders are taking profits, anticipating a possible price correction.
Technical Outlook: Key Levels to Watch
From a technical perspective, WIF has maintained a strong uptrend since hitting its April low of $0.3027. The token recently formed a rounded bottom, a bullish continuation pattern, and broke above the 50-day moving average, indicating strength.
However, momentum indicators now suggest overbought conditions. The RSI has climbed above 80, a level typically associated with impending pullbacks, while the MACD indicator shows both lines at their highest levels in over a year.
Immediate resistance is seen at $1.0815, the August swing low. If WIF fails to hold this level, the next major support lies at the 50% Fibonacci retracement level at $0.6493, marking a potential downside target if profit-taking intensifies.
