Dogwifhat (WIF), a memecoin built on the Solana blockchain, has experienced a significant surge of 15% in the past 24 hours, reaching a high of $1.98 on September 24th. This comes after the price of WIF dropped by 60% from its all-time high of $4.85 six months ago.
According to data from Cointelegraph Markets Pro and TradingView, WIF started at a low of $1.44 on September 18th and climbed 37% to trade at $1.96 on September 24th.
In comparison, the total market capitalization of memecoins has increased by 0.33% to $2.3 trillion. Most of the largest memecoins in terms of market capitalization have seen gains on September 24th, according to data from CoinGecko.
Some crypto traders anticipate that Dogwifhat will continue to build on its current momentum and initiate a sustained recovery towards its all-time highs. Altcoin analyst Sjuul stated in a September 24th post on X, “$WIF is slowly climbing, and we have been silently accumulating it since last month’s support.”
Crypto technical analyst Crypto Jobs pointed out that the WIF price was breaking out of a 180-day falling wedge, with $1.98 and $2 being key resistance levels to watch. The descending trendline of the falling wedge at $1.75 is acting as immediate support for the memecoin. The relative strength index has also risen from 53 to 66 between September 22nd and September 23rd, indicating that buyers are dominating the market.
It is worth noting that WIF’s recent rally has seen it flip crucial levels into support, including the 50-day, 200-day, and 100-day exponential moving averages (EMAs) at $1.70, $1.80, and $1.85 respectively. Increased buying from these buyer congestion zones is likely to push WIF higher towards the bullish target of the prevailing chart pattern at $2.55.
However, futures traders are skeptical of a quick rebound. If the price of WIF recovers to $2.02, $10.91 million in short positions are at risk. Additionally, a further 10% decline down to $1.80 would wipe out $13.63 million in long positions.
The surge in the price of Dogwifhat on September 24th coincides with a significant increase in its open interest (OI). Open interest is a metric used by traders and analysts to gauge market sentiment and predict future price movements. WIF’s OI rose to $315.95 million on September 24th, up approximately 30.45% from $232.82 million the previous day.
Further data from CoinGlass indicates a growing demand for leveraged long positions in WIF, as shown by the perpetual futures funding rate.
It is important to note that this article does not provide investment advice or recommendations. All investments and trading activities involve risk, and readers should conduct their own research before making any decisions.