The market sentiment of crypto investors has changed drastically in the last two weeks. In early July, when Bitcoin traded at $55000, the traders feared for more correction but now the calls for a new high emerged. Amid the renewed recovery, the Dogwifhat price outperformed most of the major altcoins with a notable 60% jump since last week. Will this recovery extend or are sellers waiting to strike at a higher level?
Dogwifhat Price Eyes $4 Rally as Futures Open Interest Doubles
Dogwifhat Price| Tradingview
The Solana-based memecoin Dogwifhat showcased a nearly upright rally in the past two weeks. After the prevailing correction bottomed at $1.50 support, the coin price rebounded 86% to trade at $2.78, while the market cap surged to $2.78 Billion.
This rally, driven by the broader market recovery and a double-bottom reversal pattern, has successfully reclaimed the daily Exponential Moving Averages (EMAs) for the 20, 50, and 100-day periods. On July 18th, the WIF price breached the $2.36 neckline of the double bottom pattern, offering an early sign of trend recovery.
According to data from Coinglass, the Dogwifhat price recovery coincided with a significant rise in Futures Open Interest, escalating from $194.26 million to $389.6 million—a substantial increase of approximately 100.56%. This significant growth in Open Interest indicates a strong influx of capital and heightened trading activity, underscoring a bullish sentiment among investors.
Dogwifhat Futures Open Interest| Coinglass
The rising slope of the ADX indicator, currently at 26%, suggests that the asset is not overbought, indicating that buyers have the potential to propel the recovery further.
With sustained buying, the Dogwifhat price can rise 18% before it challenges the major resistance of a falling channel pattern. While the ADX indicator has indicated the potential of a prolonged rally, a directional rally with no breaks is unstable.
Therefore, the WIF price is poised for a minor pullback, possibly to the 20-day EMA, to recuperate the buyer’s strength before the channel breakout.
The two parallel trendlines of the channel have carried a steady correction in the Dogwifhat coin since April 2024. A potential breakout from this channel pattern is necessary to signal uptrend continuation.
Key Takeaway
Meme cryptocurrencies, known for their volatility and appeal to speculative traders, frequently respond energetically to emerging market trends. This pattern was recently exemplified by the Dogwifhat coin, which surged 60% during the ongoing market recovery. Although the WIF price might experience some interim pullbacks, technical analysis suggests the likelihood of a sustained rally
Frequently Asked Questions (FAQs)
A rise in Futures Open Interest indicates an increase in the number of outstanding futures contracts that have not been settled. This typically suggests heightened trading activity and investor interest.
The ongoing recovery in Dogwifhat’s price demonstrates strong momentum from buyers aiming to reach a new high. However, minor pullbacks are necessary to regain buyer strength before buyers breach channel pattern to prolong bullish trend.
A rising slope of the ADX (Average Directional Index) indicator signifies an increasing trend strength. It doesn’t indicate the direction of the trend but rather the momentum behind it.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
