Dogwifhat (WIF), once a darling of the memecoin world, experienced a significant downturn in the second half of 2024. After shedding over 60% of its value, the coin staged a remarkable comeback, rallying by 65% and nearing the $2 mark. With the recent resurgence of interest in memecoins, investors are wondering if WIF can sustain its momentum.
A Mixed Signal From The Market
While the overall memecoin market is heating up, the picture for WIF is more nuanced. Derivatives data paints a somewhat optimistic outlook. WIF currently ranks third in terms of Open Interest (OI) among memecoins, suggesting strong liquidity and speculative interest. This could potentially fuel further price increases if the broader memecoin market continues to rally.
However, sentiment analysis tells a different story. Despite the positive OI, the overall weighted sentiment for WIF has cooled down from recent highs. This indicates a degree of uncertainty among spot market investors.
Technical Analysis: Key Levels to Watch
To gain a clearer picture of WIF’s potential price movements, we turned to technical analysis. A Fibonacci retracement tool applied to the July-August price action reveals several key levels. The 61.8% Fibonacci level at $1.7 has acted as short-term support.
If the memecoin hype continues to boost WIF, the 50% and 38.6% Fibonacci levels could become the next price targets, representing potential gains of 12% and 23%, respectively.
On the downside, the 78.6% Fibonacci level and a nearby support area around $1.6 are crucial levels to watch. A breakdown below these levels could signal a potential bearish reversal.
Also Read: Crypto Bloodbath- Dogwifhat (WIF) Sheds $24M In Whale Dump
Dogwifhat (WIF) has shown resilience in recovering from its recent slump. While the resurgence of memecoin interest offers potential upside, the mixed signals from derivatives and sentiment data suggest caution.
Investors should closely monitor the overall memecoin market, as well as WIF’s price action relative to the identified support and resistance levels. Technical indicators like RSI and CMF also warrant attention to gauge demand and supply dynamics.
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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