Dogwifhat Memecoin Surges 15% Amid Market Recovery

According to Cointelegraph, Dogwifhat (WIF), a Solana-based memecoin, has experienced a significant surge of 15% over the past 24 hours, reaching a peak of $1.98 on September 24. This rebound follows a substantial 60% decline from its all-time high of $4.85 six months ago. Data from Cointelegraph Markets Pro and TradingView indicates that WIF rose from a low of $1.44 on September 18, marking a 37% increase to trade at $1.96 on September 24. In comparison, the overall memecoin market capitalization has seen a modest increase of 0.33%, reaching $2.3 trillion, with most of the largest memecoins by market capitalization posting gains on September 24, according to CoinGecko data. Several crypto traders are optimistic about Dogwifhat's potential for a sustained recovery toward its all-time highs. Altcoin analyst Sjuul noted that they have been accumulating WIF since it found support last month. Meanwhile, crypto technical analyst Crypto Jobs highlighted that WIF is breaking out of a 180-day falling wedge, with $1.98 and $2 being key resistance levels to monitor. The descending trendline of the falling wedge at $1.75 is acting as immediate support for the memecoin. The relative strength index (RSI) has increased from 53 to 66 between September 22 and September 23, indicating that buyers are dominating the market. WIF's recent rally has seen it flip crucial levels into support, including the 50-day, 200-day, and 100-day EMAs at $1.70, $1.80, and $1.85, respectively. Increased buying from these zones is likely to push WIF higher toward the bullish target of $2.55. However, futures traders remain cautious about a quick rebound, with $10.91 million in short positions at risk if the price recovers to $2.02. A further 10% decline to $1.80 could result in $13.63 million in long positions being wiped out. The surge in WIF's price on September 24 follows a significant increase in its open interest (OI), a key metric used to assess market sentiment and anticipate future price movements. WIF's OI rose to $315.95 million on September 24, up approximately 30.45% from $232.82 million on September 23, according to CoinGlass data. Additional data from CoinGlass reveals increasing demand for leveraged long positions in WIF over the past few days, as indicated by the perpetual futures funding rate. The current 0.0073% eight-hour rate translates to a 0.05% cost over a seven-day period, which is not significant for traders building futures positions. Typically, when there is an imbalance driven by excessive optimism, the rate could easily exceed 1% per week over the next few days. 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.