Dogwifhat, the largest Solana-based memecoin by market capitalization, is on track to continue the recovery it began Sept. 8. WIF has climbed approximately 112% from its Sept. 6 range low of around $1.4, bringing its price up to a four-month high of $2.97 on Oct. 16.
Data from Cointelegraph Markets Pro and TradingView shows WIF trading at $2.63, up 3% over the 24 hours and 76% over the last 30 days.
WIF/USD daily chart. Source: TradingView
Let’s examine the factors that have fueled WIF’s price momentum over the last month.
WIF rises alongside other memecoins
Dogwifhat’s (WIF) bullish performance on Oct. 18 accompanies similar upside moves across other top memecoins, including Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEPE), which have rallied 23%, 9.8% and 9.2% over the last seven days, respectively.
Among the top cap memecoins, WIF has experienced more significant gains over the monthly time frame. For instance, WIF’s 30-day returns are around 76%, far exceeding DOGE’s 34% and SHIB’s 43%.
Top memecoin tokens daily, weekly and monthly performance. Source: CoinMarketCap
WIF has also performed exceptionally well in 2024, with year-to-date returns reaching approximately 1,392%, second only to Turbo (TURBO), a ChatGPT-coded memecoin that surged by around 4,570%.
Such substantial gains likely sparked interest from investors, leading to increased buying pressure.
Top memecoins year-to-date returns. Source: Messari
Increasing OI backs WIF price upside
The surge in the price of Dogwifhat over the last 30 days comes after a significant jump in its open interest (OI) over the same timeframe.
Open interest is a key metric that traders and analysts use to assess market sentiment and anticipate future price movements.
WIF’s total OI on all exchanges rose by 50% from $322.2 million on Oct. 4 to a five-month high of $480.2 million on Oct. 15.
WIF open interest across all exchanges. Source: CoinGlass
Additional data from CoinGlass reveals increasing demand for leveraged long positions in WIF over the last few days, as indicated by the OI-weighted futures funding rate.
WIF average perpetual contracts 8-hour funding rate. Source: CoinGlass
Note that the current 0.0068% eight-hour rate translates to a 0.14% cost over seven days, which is significant for traders building futures positions.
Increasing funding rates typically suggest that futures traders are bullish, expecting future price increases, which may indicate a continuation of the uptrend.
Dogwifhat price eyes $3
From a technical perspective, the WIF price action since the beginning of September has been characterized by a series of higher highs and lower lows, leading to the appearance of an ascending parallel channel on the daily chart, as shown below. The green engulfing candlestick on the daily chart shows that bulls are taking control of the price.
The lower boundary of the channel at $2.50 is acting as immediate support for the memecoin. The relative strength index is rising, and its position at 59 suggests that the market conditions still favor the upside.
WIF/USD daily chart. Source: TradingView
As such, increased buying from the current levels could see the WIF price rise to confront resistance from the middle boundary of the rising channel at $2.91.
If it rises higher than that, WIF’s price could hit the upper boundary of the prevailing chart pattern at $3.42, representing a 28% gain from the current price.
Meanwhile, futures traders are doubtful of a sustained recovery in WIF, with a total of $22.92 million in short positions at risk of liquidation if the price recovers to $3. A further 5% decline down to $2.5 would wipe out $3.84 million in long positions.
WIF exchange liquidation heatmap. Source: CoinGlass
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
