Dogwifhat (WIF) struggles to reclaim $3 amid meme coin resurgence

Dogwifhat (WIF), a leading Solana-based meme coin, finds itself grappling to regain the critical $3 level despite experiencing a robust 78% rally over the past month.

WIF hit a four-month high of $2.97 on October 16, after which the meme coin seems to have entered a consolidation phase. At press time, WIF was trading at $2.66, up 4% over the past 24 hours and 78.3% over the last 30 days.

Dogwifhat outperforms top meme coins

The recent surge in WIF’s price has positioned it among the top-performing meme coins. Compared to last month’s performance of other major players, such as Dogecoin (DOGE) and Shiba Inu (SHIB), WIF’s gains stand out.

While DOGE and SHIB saw monthly increases of 34% and 43% respectively, WIF soared by approximately 78%, showcasing a significant rebound in market sentiment.

Moreover, year-to-date performance data reveals that dogwifhat has experienced exceptional growth of about 1,392%, making it one of the standout meme coins in 2024.

The only meme coin that has outperformed WIF this year is Turbo (TURBO), a ChatGPT-coded token that saw a meteoric 4,570% increase.

The substantial appreciation in WIF’s price has likely attracted heightened investor interest, leading to increased trading activity and buying pressure.

Technical and market sentiments signal mixed prospects for WIF

From a technical standpoint, WIF’s price action since early September indicates a pattern of higher highs and higher lows, forming an ascending parallel channel on the daily chart. The lower boundary of this channel, positioned at $2.50, serves as a critical support level, while the middle boundary around $2.91 represents a near-term resistance.

If WIF can overcome the ascending parallel channel resistance, the next target would be $3.42, representing a potential 28% increase from its current price.

The WIF Open interest (OI) soared by about 50% rise in WIF’s OI from $322.2 million on October 4 to a five-month high of $480.2 million by October 15, although it had slightly dropped to $395.62M at press time on October 18 according to Coinglass.

Source: Coinglass

The funding rates for perpetual contracts have also been climbing, indicating that futures traders remain optimistic about the meme coin’s prospects.

While the WIF long/short ratio is 1.92 according to Coinalyze data, there is still a significant of funds in short positions, suggesting skepticism over WIF’s ability to sustain its rally.

Taking all these into consideration, it remains uncertain whether the dogwifhat (WIF) momentum will be sufficient to break the $3 barrier and continue its upward movement.

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