Solana-based memecoin Dogwifhat (WIF) experienced a noteworthy 13% price rise in one day, peaking at $1.77 on August 6. This surge follows a significant drop from its peak of $2.89 just two weeks prior, representing a 63% decline. According to TradingView data, WIF’s price rose from $1.07 on August 6 to a daily high of $1.77 on August 7, marking a 66% increase.
What is Happening with WIF?
In contrast, data from CoinMarketCap showed that most of the leading cryptocurrencies by market cap were losing value on August 7. Despite this trend, the total market cap of Dogwifhat increased by 5.3%. Dogwifhat is now the fourth largest memecoin by market cap, trailing behind Pepe, which has a market cap of $3.13 billion—almost double that of Dogwifhat.
Analyst Kyledoops noted that although WIF faced strong resistance in its recovery, it remains the best altcoin choice within the Solana ecosystem. Technical analysis also points to a V-shaped recovery pattern for Bitcoin, with two green engulfing candles on the daily chart signaling bullish control. Immediate support is found at $1.50, with the relative strength index rising from 27 to 38 between August 5 and August 8, indicating a return of buyers.
Details on the Subject
Increased buying activity from current price levels could push WIF to encounter resistance at the 50-day exponential moving average (EMA) of $2.13 and the 100-day EMA of $2.34. If momentum continues, the price could reach the neckline of the dominant chart pattern at $2.90, representing an 80% gain from current levels. Meanwhile, there has been a notable rise in demand for long positions on WIF, as shown by the perpetual funding rate turning positive after a market-wide sell-off on August 5.
Key Insights for Investors
– The perpetual funding rate for WIF is currently positive, indicating increased buyer leverage.
– A continued positive funding rate could signal more upward momentum.
– Immediate support for WIF is at $1.50, with resistance at $2.13 and $2.34, according to technical analysis.
– A significant imbalance due to optimism might push weekly rates above 1% in the coming days.
The current eight-hour funding rate is 0.0066%, translating to a 0.13% cost over seven days, which is not substantial for investors creating futures positions. However, this rate could easily surpass 1% per week if excessive optimism continues, impacting the market dynamics significantly.