Dogwifhat (WIF), a memecoin project based on Solana, is up 13% in a day, reaching a peak of $1.77 on August 6. This is notable as part of a recovery after WIF’s price fell 63% from its peak of $2.89 two weeks ago. Data from TradingView shows that WIF rose from a high of $1.07 on August 6, and reached a daily peak of $1.77 on August 7, rising 66%.

What's Happening on the WIF Front?

For comparison, while most of the largest cryptocurrencies by market cap in this sector posted losses on August 7, memecoin's total market value increased by 5.3%, according to data from CoinMarketCap.

Dogwifhat remains the fourth-largest memecoin by market cap, ranking below Pepe. Pepe has a market cap of $3.13 billion, almost double that of Dogwifhat. Meanwhile, analyst Kyledoops noticed that WIF is trading at $1.74, and said that despite WIF still facing stiff resistance on its path to recovery, it remains the best altcoin to pick within the Solana ecosystem:

“WIF remains the top pick on Solana, although a slight pullback is possible with the EMA Ribbon at the top.”

From a technical perspective, Bitcoin price is feeding a V-shaped recovery chart pattern as shown below on the daily chart. The appearance of two green engulfing candles on the daily chart indicates that the bulls have taken control of the price. The $1.50 level acts as immediate support for the memecoin. The relative strength index rose from 27 to 38 between August 5 and August 8, indicating that buyers are back on the scene.

Therefore, any increased buying from the current levels could see the price face resistance from the 50-day exponential moving average (EMA) and the 100-day EMA at $2.13 and $2.34 respectively. Above this, WIF’s price could reach the neckline of the dominant chart pattern at $2.90, implying a gain of 80% from the current price.

Details on the Subject

Meanwhile, demand for long positions on the WIF front has increased over the past few days, as evidenced by the perpetual funding rate. Data from Coinglass reveals that the WIF perpetual funding rate has turned positive after falling into negative territory following the market-wide sell-off on August 5. While a positive funding rate indicates that buyers are seeking more leverage, the opposite scenario occurs when sellers seek additional leverage, leading to a negative funding rate.

It is worth noting that the current 0.0066% eight-hour rate translates to a cost of 0.13% over a seven-day period, which is not significant for investors who create futures positions. The rate could easily exceed 1% per week over the next few days when there is an imbalance, usually due to excessive optimism.