TLDR
- Dogwifhat price surged 5.4% on Monday, reaching a two-month high of $2.77
- The cryptocurrency broke past a 190-day resistance level
- Future open interest for WIF increased significantly, rising 89% since mid-September
- Technical analysis suggests a potential 54% rally to $4.08
- The Average Directional Index (ADX) at 28% indicates possible buyer exhaustion soon
The Solana-based meme cryptocurrency Dogwifhat (WIF) has shown significant market momentum, breaking through a key resistance level and signaling potential for further growth.
On Monday, WIF’s price increased by 5.4%, reaching a two-month high of $2.77. This surge comes as part of a broader market uptick and represents a breakthrough of a 190-day resistance barrier.
Over the past four days, Dogwifhat’s price has risen sharply from $2 to $2.7, marking a 34% increase. This growth has pushed the cryptocurrency’s market capitalization to $2.67 billion.
The recent price jump has overcome bearish sentiment triggered by geopolitical events, including tensions between Israel and Iran, and surpassed the $2.5 price level.
Technical analysis of WIF’s daily chart reveals a wedge pattern breakout, indicating a potential major trend reversal.
This follows a steady six-month correction that had previously driven the price down to a low of $1 in early August. If the current demand pressure continues, analysts suggest that buyers could potentially drive a 54% rally, pushing the price towards $4.08, with the possibility of challenging the previous peak of $4.86.
Adding to the bullish sentiment, WIF’s futures market has seen a dramatic increase in open interest. Data from Coinglass shows that open interest has surged by 89% since mid-September, rising from $195.7 million to $370 million.
This sharp increase indicates growing participation in the WIF futures market and suggests a substantial buildup of positions by traders anticipating significant price movements in the near future.
However, some technical indicators suggest caution. The Average Directional Index (ADX), currently at 28%, is approaching overbought territory.
This high ADX value typically indicates that buyers may soon reach exhaustion and could require a pullback to recuperate bullish momentum. Market observers note that if the Dogwifhat price breaks below $2, there’s a possibility of a notable drop to $1.
The cryptocurrency’s price is currently trading above several key exponential moving averages (EMAs), including the 20, 50, 100, and 200-day EMAs.
This positioning above these important technical indicators is expected to intensify buying momentum and potentially support a prolonged rally. Analysts are particularly watching for a potential bullish crossover between the 50-and-100-day exponential moving averages, which could further accelerate the recovery momentum.
Dogwifhat’s recent performance comes amid broader interest in meme cryptocurrencies and continued growth in the Solana ecosystem.
