Recent data on the impact of thought-based narratives suggests that meme coin mania is likely to return.
Will #WIF benefit from renewed market attention?
#Dogwifhat [WIF] was one of the most successful memecoins in the first half of 2024. However, its momentum waned in the second half of the year, with WIF's price falling more than 60% to $1.0 in July and August.
recent data shows that interest in memecoin is rebounding.
Can memecoin's surge in popularity lift WIF? AMBCrypto's assessment of the WIF futures market shows that at the time of writing it was the third largest open interest (OI) market.
According to Coinglass, WIF has an OI of $251 million, making it the third most liquid memecoin.
This means that the overall growth of memecoin could spill over to WIF. In addition, the positive OI growth also indicates a bullish sentiment among WIF speculators in the derivatives market. However, despite the somewhat bullish sentiment in the derivatives market, the overall weighted sentiment in the cash market was somewhat neutral.
In other words, WIF prices could go either way. But what are the key levels to watch in the short term? Let's take a look at the four-hour chart. Between the July high and the August low, the Fibonacci retracement tool (yellow) was constructed. According to this tool, the 61.8% Fibo level ($1.7) acted as a short-term support during the weekend sideways movement.
If the coin shows renewed interest in the WIF rally, the 50% and 38.6% Fibo levels are the nearest bullish targets. Reaching these levels means potential profits of 12% and 23% respectively.
Read us at: Compass Investments
