- Dogwifhat (WIF) surged 34% on Wednesday but has since dropped 13% to $1.19 after a hype-driven rally fizzled out.
- Open interest fell by 19% to $372 million, signaling reduced market participation and waning confidence.
- Analysts warn WIF could fall below $1 if selling pressure continues, though a break above $1.62 could trigger a recovery rally.
Solana-based meme coin Dogwifhat (WIF) had a wild ride on Wednesday, soaring by 34% during the intraday session. The rally came after speculation surfaced that the project might get a promotional feature on the Vegas Sphere. Investors jumped in fast, driving WIF’s price to $1.37. But as quickly as it rose, the coin’s momentum reversed.
Currently, WIF is trading at $1.19, having shed 13% from its intraday high. The price spike was short-lived, leaving traders wondering if the hype-driven pump had run its course.
Developers Hint at Promotion, But Sellers Dominate
In a cryptic post on X (formerly Twitter), Dogwifhat’s developers teased a potential partnership or feature on the Vegas Sphere, sparking massive demand on spot markets. The token, which had been struggling for traction, surged over 30% in response.
However, excitement quickly waned. An assessment of WIF’s open interest—tracked by Coinglass—reveals a 19% drop over the past 24 hours, bringing total open interest down to $372 million.
For those unfamiliar, open interest measures the number of unsettled contracts in the market. When both price and open interest decline, it suggests traders are closing positions and exiting, reflecting reduced confidence or interest in the asset.
Adding to bearish signals, WIF remains below the red line on its Super Trend indicator, which continues to flash warning signs for traders.
source: coinglass
Technical Analysis: Bearish Signals Persist
The Super Trend indicator, which helps gauge market trends, has kept WIF below its key resistance level. When prices trade beneath the Super Trend line, it suggests continued downward momentum and strong selling pressure.
If this bearish trend holds, WIF could extend its losses further. Analysts predict that the token may dip below the psychological $1 support level, possibly reaching $0.97—an 18% decline from its current price.
Potential Scenarios for WIF’s Price Movement
Despite the bearish sentiment, there is still a path for recovery if buying activity picks up. Bulls would need to push WIF’s price above the dynamic resistance of the Super Trend indicator, currently at $1.62. Breaking this level could pave the way for a rally toward $1.83, a key target for traders eyeing a reversal.
For now, though, WIF faces mounting pressure as traders remain cautious amid the fading hype.
