- Dogwifhat (WIF), a Solana-based memecoin, has rallied around 76% in the past 30 days, reaching a four-month high of $0.297 on October 16th.
- The surge in WIF’s price is accompanied by an increase in open interest and funding rates, suggesting bullish sentiment among futures traders.
- Technical analysis suggests WIF’s price could potentially reach $0.342, a 28% gain from current levels, if the uptrend continues within the prevailing ascending parallel channel pattern.
Dogwifhat price staged an over 70% rally over the past month as memecoin traders reset their positions.
WIF Rises Alongside Other Memecoins
Dogwifhat’s (WIF) bullish performance on Oct. 18 accompanies similar upside moves across other top memecoins, including Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEPE), which have rallied 23%, 98% and 92% over the last seven days respectively.
Among the top-cap memecoins, WIF has experienced more significant gains over the monthly time frame. For instance, WIF’s 30-day returns are around 76%, far exceeding DOGE’s 34% and SHIB’s 43%.
Increasing OI Backs WIF Price Upside
The surge in the price of Dogwifhat over the last 30 days comes after a significant jump in its open interest (OI) over the same timeframe.
Open interest is a key metric that traders and analysts use to assess market sentiment and anticipate future price movements. WIF’s total OI on all exchanges rose by 50% from 3.222 million on Oct. 4 to a five-month high of 4.802 million on Oct. 15.
Additional data from CoinGlass reveals increasing demand for leveraged long positions in WIF over the last few days as indicated by the OI-weighted futures funding rate.
Note that the current 0.00068 eight-hour rate translates to a 0.014% cost over seven days which is significant for traders building futures positions.
Increasing funding rates typically suggest that futures traders are bullish expecting future price increases, which may indicate a continuation of the uptrend.
Dogwifhat Price Eyes $3
From a technical perspective, the WIF price action since the beginning of September has been characterized by a series of higher highs and lower lows, leading to the appearance of an ascending parallel channel on the daily chart. The green engulfing candlestick on the daily chart shows that bulls are taking control of the price.
The lower boundary of the channel at $2.50 is acting as immediate support for the memecoin. The relative strength index (RSI) is rising and its position at 59 suggests that the market conditions still favor the upside.
As such, increased buying from the current levels could see WIF’s price rise to confront resistance from the middle boundary of the rising channel at $2.91. If it rises higher than that, WIF’s price could hit the upper boundary of the prevailing chart pattern at $3.42, representing a 28% gain from the current price.
Meanwhile, futures traders are doubtful of a sustained recovery in WIF, with a total of 2.292 million in short positions at risk of liquidation if the price recovers to $3. A further 5% decline down to $2.50 would wipe out 3.84 million in long positions.
