Dogwifhat (WIF), one of the most talked-about memecoins, has seen a significant price surge, jumping 10% in the last 24 hours to reach a high of $2.33. This marks a key turning point for WIF, which has regained a market cap of over $2 billion for the first time in seven weeks. The token’s bullish momentum is attracting attention, but it also raises questions about whether this rally is sustainable given the slow influx of new holders.
Price Surge Driven by Bullish Momentum
On September 24, WIF flipped a critical resistance level after breaking above $1.96. The current price action shows strong upward traction, with WIF targeting the next resistance at $2.85. Analysts are optimistic, as the memecoin’s performance resembles the euphoria that fueled its meteoric rise in early 2024 when WIF saw an 8,000% return in just three months. This rally triggered a wider surge in the memecoin market, with similar coins like POPCAT, BRETT, and MEW riding on WIF’s success.
Henrik Zeberg, Head Macro Economist at Swissblock, recently noted that WIF is “breaking out of a long ABCDE-consolidation,” and he expects the price to climb to parabolic levels by November 2024. According to his analysis, WIF could reach as high as $80 within the next six weeks—a staggering 3526% increase from its current price.
Slow Growth in New Holders
Despite WIF’s strong price rally, the token has not attracted a significant number of new investors. According to data from Holderscan, only 2,322 new holders—representing a 1.29% increase—were added in the past seven days. This brings the total number of holders to 182,877. However, a closer look at the distribution reveals that the top 50 holders control nearly 54.84% of the total supply, indicating concentrated ownership and raising concerns about market manipulation.
The slow increase in new holders suggests that the futures market may be driving WIF’s current rally. Open interest in WIF futures spiked 30% earlier this week to $233 million, coinciding with the token’s breach of the $2 range. This could mean that while the market sentiment is bullish, retail investors have yet to jump on board in significant numbers.
Can WIF Reach $3?
The immediate price target for WIF stands between $2.85 and $3.00, with a critical reclaim needed at $2.45–$2.50. Technical analysis indicates that WIF recently broke above a falling wedge pattern, closing above a key resistance at $1.95. This resistance aligns with the 0.618 Fibonacci level, which may serve as a strong support point moving forward.
Also Read: Dogwifhat (WIF) Surges 4% Holding $2 Support As POPCAT Battles For $1 with $968M Market Cap
Independent trader Dentoshi also echoed bullish sentiments, suggesting that WIF has completed a deep retracement from the 0.618-0.707 Fibonacci levels, an area known as the “golden pocket hold.” The trader believes this signals a trend reversal, with WIF’s previous high of $4.83 still within reach. Should the memecoin continue its bullish trajectory, it could retest the $3 mark in the coming days, though a pullback to support at $2 remains possible.
Dogwifhat’s recent price surge has reignited bullish sentiment in the memecoin market, with analysts projecting a possible run to $3 and beyond. However, the slow growth in new holders and concentrated ownership raise questions about the sustainability of the rally. As WIF eyes its next resistance, traders will be watching closely to see if the memecoin can break through or if it faces a pullback to lower support levels. For now, WIF remains one of the top performers in the market, but its future trajectory will depend on whether retail investors jump in and sustain the momentum.
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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