• dogwifhat has bounced from an 11-month low after recording a 12% gain in 24 hours. 
• The recent gains caused over $2M in short liquidations, which was the highest in over two weeks.

The memecoin market traded lower on the 29th of January, with the total market capitalization of these tokens falling by around 2% to $92 billion.

However, Solana [SOL]-based meme coin dogwifhat [WIF] defied these bearish trends after registering a 12% gain in 24 hours to trade at $1.32 at press time. 

WIF is rebounding after dropping to an 11-month low below $1. The dip has attracted buyers, as data from CoinMarketCap showed that trading volumes have surged by 210% to $1 billion at press time.

At the same time, short liquidations surged to $2M per Coinglass, marking the highest level in two weeks. 

With short liquidations adding to the buying pressure, is WIF prime for a strong rebound, or will bears regain control? 

dogwifhat price analysis 

dogwifhat’s bounce from multi-month lows coincided with strong buying volumes, suggesting that a continuation of the bullish trend was likely.

However, for bulls to remain in control, WIF needs to flip resistance at the 0.786 Fibonacci level ($1.62). 

The Relative Strength Indicator (RSI) indicator has made a sharp move north and formed a buy signal after crossing above the signal line.

Nevertheless, the RSI value remains in bearish territory at 40. For a bullish momentum to be confirmed, this indicator needs to rise above 50.