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Dogwifhat (WIF), a memecoin project on the Solana blockchain, has experienced a notable rebound, significantly outperforming both major cryptocurrencies and other memecoin. On August 6, WIF's price surged by 13%, reaching a peak of $1.77. This rebound follows a substantial 63% decline from its previous high of $2.89 just two weeks prior.
Memecoin Market Performance Highlights WIF’s Strength
Data from market analysis tools indicates that WIF climbed from a low of $1.07 on August 7 to an intraday high of $1.77 on August 6, marking a 66% increase. In contrast, while the overall memecoin market capitalization saw a modest rise of 5.3%, many of the largest cryptocurrency within this sector faced losses on August 7.
WIF’s Market Position Among Memecoins
Despite recent volatility, WIF remains the fourth-largest memecoin by market capitalization, trailing behind Pepe (PEPE), which holds nearly twice the market cap of WIF at $3.13 billion. According to Solana news source SolanaFloor, WIF has emerged as the top gainer among the top 100 coins by market cap, underscoring its relative strength in a challenging market environment.
Technical Analysis Indicates Potential for Continued Growth
Technical analysis by pseudonymous analyst Kyledoops highlights that WIF, trading at $1.74, is viewed as a top pick within the Solana ecosystem. However, WIF still faces significant resistance as it attempts to recover from recent lows. The memecoin's price is currently finding immediate support at the $1.50 mark.
Chart Patterns Suggest a V-Shaped Recovery
The daily chart for WIF shows a V-shaped recovery pattern, with the appearance of two green engulfing candlesticks signaling bullish control. The relative strength index (RSI) has improved from 27 to 38 between August 5 and August 8, suggesting a resurgence of buying interest. Increased buying pressure from current levels could propel WIF’s price toward resistance points, including the 50-day exponential moving average (EMA) at $2.13 and the 100-day EMA at $2.34.
Potential for Further Price Appreciation
Should WIF surpass these resistance levels, the price could potentially rise to test the neckline of the prevailing chart pattern at $2.90. This represents an 80% gain from the current price. The positive momentum in WIF’s price suggests that the memecoin may continue its upward trajectory if buying pressure remains strong.
Leveraged Long Positions Reflect Market Sentiment
The demand for leveraged long positions in WIF has increased significantly over recent days. Data from Coinglass shows that WIF’s perpetual futures funding rate has flipped positive following the August 5 market-wide sell-off. A positive funding rate indicates that buyers are seeking increased leverage, whereas a negative rate suggests that sellers are looking for additional leverage.
Current Funding Rates and Future Implications
At present, the eight-hour funding rate for WIF is 0.0066%, translating to a 0.13% cost over a seven-day period. This rate is relatively low for traders building futures positions. However, if excessive optimism leads to an imbalance, the funding rate could rise above 1% per week in the near future.
WIF’s Resilience in a Volatile Market
Dogwifhat’s significant rebound and outperformance compared to major cryptocurrencies and other memecoins underscore its resilience in a volatile market. As WIF continues to recover from recent declines and faces key resistance levels, its performance will be closely watched by traders and investors. The positive funding rate and technical indicators suggest that WIF may have further upside potential, making it a notable asset in the current market landscape.