A Solana-based memecoin project called Dogwifhat (WIF) surged 13% daily and peaked on August 6 at $1.77. This is a portion of the general recovery following the 63% decline in WIF’s price from its peak of $2.89 two weeks ago.
Data from various sources show that WIF increased from a low point of $1.07 on August 7 to an intraday high of $1.77 on August 6, an increase of 66%.
According to CoinMarketCap data, most of the biggest cryptocurrencies in this sector by market capitalization posted losses on August 7, although the total market value of meme coins is up 5.3%.
“Solana meme coin $WIF becomes the top gainer among the top 100 coins by market cap,” declared Solana news source SolanaFloor in an Aug. 7 post on X.
Dogwifhat is still the fourth-biggest memecoin in terms of market valuation, trailing only Pepe, which is valued at $3.13 billion, almost twice as much as Dogwifhat.
Although WIF still faces significant obstacles on its road to recovery, anonymous analyst Kyledoops noted that the coin is currently trading at $1.74 and stated that WIF is still a top alternative option to choose within the Solana ecosystem.
As the memecoin swiftly “came back inside the range,” another trader CryptoJack believes that WIF’s recent decline below $1.5 was a “fake breakout.”
Technically speaking, the price of bitcoin is forming a V-shaped recovery chart pattern on the daily chart, as can be seen below. Bulls are gaining control of the price as evidenced by the appearance of two green engulfing candlesticks on the daily chart.
The memecoin is now experiencing instant support at $1.50. The increase in the relative strength index from 27 to 38 between August 5 and August 8 indicates that buyers were making a comeback.
Consequently, if purchasing volume increases from the current levels, the price may rise to test resistance at $2.13 and $2.34, respectively, from the 50-day and 100-day exponential moving averages (EMAs).
If WIF’s price rises above that, it may reach the neckline of the dominant chart pattern at $2.90, which would be an 80% increase from the current price.
Perpetual futures financing rate shows that demand for leveraged long positions in WIF has increased throughout the past few days.
WIF’s permanent funding rate has become positive, according to Coinglass data, after falling into the negative zone during the market-wide sell-off on August 5.
When there is a positive financing rate, it means that buyers who are long are looking for more leverage. Conversely, when short sellers are looking for more leverage, there is a negative funding rate.
Note that the current eight-hour rate of 0.0066% is a cost of 0.13% over seven days. This is not a big deal for traders who are constructing futures positions. Generally, over the next several days, the rate might easily surpass 1% each week when there is an imbalance caused by overconfidence.
