Dogwifhat Faces 28% Drop in Open Interest as Traders Brace for Critical $1.50 Support Retest

Dogwifhat, a Solana-based memecoin, has seen a significant decline in open interest (OI) amid falling prices and investor caution. Since July 27, the open interest for Dogwifhat futures contracts has dropped by 28%, from $353.4 million to $252.5 million as of August 3, according to CoinGlass data. This decrease in OI reflects a broader market trend, with traders anticipating a potential retest of the $1.50 support level.

As of August 3, Dogwifhat (WIF) was trading at $1.67, marking a 35.48% decline from its July 27 price, based on CoinMarketCap data. Market sentiment suggests a near-term test of the critical $1.50 support level, which traders believe could be pivotal for the coin's future price movements.

Crypto analyst Cryptorphic highlighted the potential for further declines, stating on August 2 that "WIF is in a correction phase and likely to move toward the lower support trendline between $1.50 and $1.70." Similarly, commentator Scient observed that the price is "correcting towards the daily support zone," while CryptoJack, with 337,000 followers, noted the likelihood of a retest at $1.50.

Despite some hope for recovery, futures traders remain cautious. A recovery to $1.80 could jeopardize $11.89 million in short positions, while a further 10% drop to $1.50 might result in the loss of $7.55 million in long positions.

Dogwifhat's current situation contrasts sharply with earlier optimism, such as former BitMEX CEO Arthur Hayes' prediction in March that WIF could reach $10. However, since hitting $3 in March, the price has struggled to regain momentum. In June, Dogwifhat briefly dropped out of the top 50 cryptocurrencies by market cap but has since climbed back to rank 47, just above Sui (SUI).

Investors are urged to remain vigilant and conduct thorough research, as the cryptocurrency market is inherently volatile.

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