The meme coin market has been turbulent lately, and Dogwifhat [WIF], the Solana-based meme coin, is no exception. After a sharp decline of over 20% in recent days, WIF appears set for a significant recovery, with bullish indicators suggesting a potential price rally.
Since the start of September 2024, WIF’s Open Interest (OI) has shown remarkable growth. According to Coinglass, the OI for WIF increased from $199 million to $221 million, indicating renewed market activity. This rising OI, despite the bearish market sentiment, could be an early sign of a price reversal.
Bullish Indicators Emerge
A key signal supporting this potential rally is WIF’s OI-Weighted Funding Rate, which has turned positive, reflecting growing trader optimism about the coin’s future. The positive funding rate suggests that more traders expect an upward price movement. This is a clear indication of strong bullish conviction among market participants.
Adding to the positive outlook, WIF recently broke out of its consolidation phase near the crucial support level of $1.50, according to AMBCrypto. The Relative Strength Index (RSI) for WIF is also in oversold territory, which typically signals that a price rebound is imminent. With the market potentially on the verge of a reversal, some analysts believe WIF could surge by up to 20%, pushing the coin’s price toward the $1.90 mark—or even higher.
Experts Predict Strong Rebound
Crypto expert Bluntz_Capital added to the optimism by posting a technical analysis on X (formerly Twitter). He pointed out that WIF had perfectly retested its channel pattern on the four-hour chart, suggesting a high probability of the coin reaching the $2.20 level soon. This analysis has fueled further speculation of a strong recovery for WIF.
Currently, liquidation levels offer insight into potential market movements. Data from Coinglass shows that the major liquidation points are at $1.547 on the downside and $1.658 on the upside. Should the bullish sentiment persist and the price reach $1.658, approximately $6.06 million worth of short positions will be liquidated, further boosting the coin’s momentum.
On the flip side, if market sentiment shifts to bearish, and WIF’s price falls below key levels, it could lead to the liquidation of $6.25 million worth of long positions.
Also Read: Dogwifhat Futures Surge 16% As Traders Eye 66% Rebound From March High
Market Sentiment Favors WIF
As of press time, WIF is trading at $1.60, marking an 8% price surge in the last 24 hours. Trading volume has also increased by a modest 5%, signaling heightened interest from traders looking to capitalize on WIF’s potential breakout.
With rising Open Interest, positive funding rates, and technical indicators pointing to a recovery, WIF could soon stage a major rally. For now, traders are watching closely, waiting to see if this meme coin can shake off its recent losses and climb to new heights.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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