The open interest (OI) for the Solana-based memecoin Dogwifhat (WIF) has seen a significant decline since July 27, with its price dropping as well. Traders are predicting a retest of the critical support level at $1.50. On August 3, WIF's OI fell to $252.5 million, marking a 28% decrease from $353.4 million just a week prior. The token is currently trading at $1.67, down 35.48% since July 27.
Market Sentiment and Predictions
Several crypto analysts and traders have weighed in on the situation. Cryptorphic noted that WIF is in a correction phase and is likely to move towards the lower support trendline between $1.50 and $1.70. Another commentator, Scient, emphasized that the price is correcting towards the daily support zone. Similarly, CryptoJack highlighted that WIF is likely to retest the $1.50 support level. These sentiments reflect a broader market caution among traders regarding WIF’s immediate price movements.
Skepticism Over Quick Recovery
Future traders are not optimistic about a quick rebound for WIF. Currently, $11.89 million in short positions are at risk if the price recovers to $1.80. Conversely, a further decline to $1.50 would result in a $7.55 million loss in long positions. This sentiment is a far cry from the earlier bullish prediction by Arthur Hayes, former CEO of BitMEX, who had anticipated WIF reaching $10. Despite these challenges, WIF has managed to climb back into the top 50 cryptocurrencies by market capitalization, currently ranked at number 47.
Conclusion
Dogwifhat’s significant drop in open interest and price reflects the broader market's cautious outlook. With traders predicting a retest of the $1.50 support level, the immediate future for WIF appears uncertain. While there is skepticism regarding a swift recovery, the memecoin's ability to maintain its ranking among the top 50 cryptocurrencies suggests it still holds a degree of resilience in a volatile market.
