Key Takeaways:
- dogwifhat (WIF) rallied 18.56%, reaching a local high of $0.9558 before retracing slightly.
- Buying volume and derivatives interest surged, signaling a bullish shift in market sentiment.
- Profit-taking activity has emerged, posing a risk to continued upward momentum.
dogwifhat [WIF], one of the leading memecoins in the crypto market, soared 18.56% to reach a local high of $0.9558 before slightly retracing to $0.94. The price rally was accompanied by a massive spike in market activity, with its market cap jumping 159% to $603.7 million, reflecting renewed investor interest. But is this momentum sustainable, or is it a fleeting technical bounce?
Buyers Flip the Script as Volume Delta Turns Positive
Just days ago, WIF was dominated by selling pressure, with bears firmly in control. However, the tide has turned. According to Coinalyze data, buy volume overtook sell volume for two consecutive days. WIF registered $9.44 million in buy orders against $8.88 million in sells at press time. The day before, buy volume outpaced sell volume by $2 million, highlighting growing demand and fresh inflows into the asset.
This consistent positive delta indicates that bullish sentiment is growing as more market participants buy into the recovery, flipping short-term momentum in favor of the bulls.
Derivatives Data Shows Bullish Positioning
The futures market further validates this bullish turnaround. CoinGlass reports a 25.51% spike in Open Interest (OI) to $441.49 million, signaling more capital entering long positions. Derivatives volume also jumped nearly 89% to $2.3 billion, confirming heightened speculative interest.
Even more telling, the Funding Rate turned positive — a clear sign that traders are increasingly betting on WIF’s continued ascent. These metrics collectively suggest rising confidence in a broader uptrend.
Profit-Taking Emerges Amid Uptrend
Despite the strong recovery, profit-taking is beginning to surface. dogwifhat hit a 3-week high, prompting some long-term holders and speculative traders to lock in gains. CoinGlass data shows that WIF’s Netflow has turned positive for two days straight, with $2.52 million flowing into exchanges — typically a bearish signal if sustained.
This influx hints that while many are bullish, some traders are cautious and prepared to sell into strength, which could cap upside potential in the short term.
Also Read: Dogwifhat (WIF) Holds $0.70 Support but Faces Key Resistance at $1
Momentum indicators suggest that the rally could have more legs. WIF’s Stochastic RSI surged to 86 following a bullish crossover, signaling strong upward momentum. Meanwhile, the Relative Strength Index (RSI) rose to 55, reflecting growing buying strength.
If buyers maintain pressure, WIF could break through the psychological $1.00 resistance and aim for the $1.20 level. However, persistent profit-taking may stall progress and cause a retracement to the $0.84 support zone.
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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