Dogwifhat Defies Solana Meme Coins Crash As $WIF Price Sees 5% Spike

With a generalized weakness in the meme coin market, Solana-based meme token Dogwifhat ($WIF) remains stoic.

Coupled with other meme coins that went red recently due to renewed interest following US President Donald Trump's interest in cryptocurrency, $WIF seems to be having its way, posting 5.1% in the last 24 hours and currently trading for $0.8275.

Despite this uptick in price, the trading volume of $WIF on Feb. 5 plummeted by 46% in the past day to $482.56 million. It indicates that there is still demand for the token but generally, market activity is slow.

The current market cap for this token stands at $828.2 million, and that makes it one of the bigger meme coins based on Solana.

Conflicting Signals: Short-Term Optimism vs. Long-Term Bearish Trend

The technical indicators present a mixed outlook, with some suggesting short-term bullish momentum while others indicate a broader bearish trend. 

The Oscillators reflect a relatively neutral to slightly bullish view because there are two buy signals, nine neutral indicators, and no sell signals.

Notably, the Momentum and MACD levels both show a buy signal; therefore, there is some short-term upward pressure on $WIF. The Relative Strength Index (RSI) at 43.44 is neutral; hence, the token is neither overbought nor oversold. Other important oscillators such as the Commodity Channel Index (CCI), Average Directional Index (ADX), and Stochastic RSI are also neutral, indicating there is no significant directional movement in the market.

In contrast, the averages are strongly bearish. There are 10 sell signals, one neutral indicator, and three buy signals. The 10-day Exponential Moving Average and Simple Moving Average is a short-term buy. All longer-term moving averages of 20, 30, 50, 100, and 200-day EMA & SMA are on a sell signal and suggest that WIF continues to be in a larger downtrend.

This suggests that although there might be some short-term recovery, the larger picture of market structure is still on the bearish side.

Solana Meme Coin Dip: A Buying Opportunity?

The Solana-based meme coin dip has sent nerves for most of the traders, but it also opens a window of opportunity for "buy the dip." Considering its efficiency and the adoption rate, Solana is set to play a crucial role in the blockchain space despite short-term market volatility.

Additionally, the potential approval of meme coin ETFs, like Bitwise's Dogecoin ETF or Grayscale's Dogecoin Trust, could boost demand for Solana-based tokens. 

One of the most interesting projects in the Solana ecosystem is the launch of Solaxy ($SOLX), Solana’s first Layer-2 scaling solution, which has already raised $18 million in its presale. 

As Solana faces periodic network congestion, Solaxy aims to offload up to 65% of transactions to its L2 network, improving transaction speeds (and achieving 65,000 transactions per second) and reducing failures during high-demand periods. This innovation is particularly crucial after Solana experienced transaction delays during last month’s surge in meme coin trading, proving the need for a scalable infrastructure.

Beyond scalability, the hybrid approach brings together elements of both Solana and Ethereum for the benefit of NFT marketplaces and cross-chain applications.

With a low-cost transaction model (targeting fees as low as $0.001) and a staking mechanism currently offering 224% annual yields, early investors are showing strong confidence in the project. More than 65,000 people now follow Solaxy on Twitter, with another 5,400 on Telegram. 

Visit Solaxy presale