TLDR
- Dogwifhat (WIF), a Solana-based memecoin, gained 13% in one day, reaching $1.77 on August 6.
- WIF’s price rose 66% from a low of $1.07 on August 7 to an intraday high of $1.77 on August 6.
- The total memecoin market capitalization increased by 5.3%, despite losses in other major cryptocurrencies.
- Dogwifhat is the fourth largest memecoin by market capitalization, behind Pepe.
- Technical analysis shows a V-shaped recovery pattern for WIF, with $1.50 acting as immediate support.
Dogwifhat (WIF), a Solana-based memecoin, has posted a 13% gain, reaching a high of $1.77 on August 6. This surge comes as part of a broader rebound following a 63% drop from its previous high of $2.89 two weeks ago.
Data shows that WIF climbed from a low of $1.07 on August 7 to an intraday high of $1.77 on August 6, marking a 66% increase. This performance is particularly noteworthy given the overall market conditions, where many major cryptocurrencies experienced losses.
The total memecoin market capitalization saw a 5.3% increase, despite most of the largest cryptocurrencies in this sector posting losses. Dogwifhat currently holds the position of the fourth largest memecoin by market capitalization, trailing behind Pepe, which has nearly twice the market cap at $3.13 billion.
Technical analysis of WIF’s price movement reveals a V-shaped recovery pattern on the daily chart. The appearance of two green engulfing candlesticks suggests that bulls are taking control of the price. The $1.50 mark is currently acting as immediate support for the memecoin. The relative strength index has risen from 27 to 38 between August 5 and August 8, indicating a return of buyers to the market.
Analysts suggest that increased buying from current levels could see the price rise to face resistance from the 50-day and 100-day exponential moving averages at $2.13 and $2.34, respectively. Some optimistic projections even suggest a potential rise to $2.90, which would represent an 80% gain from current prices.
The demand for leveraged long positions in WIF has also spiked over the last few days, as indicated by the perpetual futures funding rate. Data reveals that WIF’s perpetual funding rate has turned positive after plunging into negative territory following the August 5 market-wide sell-off. This positive funding rate suggests that buyers are seeking increased leverage.
Over the past seven days, WIF has declined by 26.34%, with trading volume sinking by 37% on daily charts. The Directional Movement Index shows a strong downward trend, with the negative index at 28 sitting above the positive index at 17.
Open interest per exchange has also declined over the past week, from a high of $146.7 million to $109.1 million at the time of reporting. This decline suggests that investors are closing their positions without opening new ones. However, the last 24 hours have witnessed a rise in WIF open interest per exchange.
Looking ahead, if the gains on daily charts hold, WIF may attempt to reach a significant resistance level of around $2.3. However, if the overall market sentiment remains bearish, Dogwifhat is not out of danger of declining to $1.05.
The post Dogwifhat (WIF) Price Shows Strong Recovery, Up 66% from Recent Low appeared first on Blockonomi.
