Dogwifhat, the popular Solana meme coin, bounced back on Friday as sentiment in the crypto and stock market improved. The WIF token soared to a high of $2.67, its highest level since October 7, and 145% above its lowest point in August. It was also approaching its highest point in over three months.
WIF open interest rises
Dogwifhat, the fourth-biggest meme coin in the industry, bounced back as most cryptocurrencies rallied. Bitcoin climbed above $62,000, while Ethereum, Solana, Shiba Inu, and Chainlink jumped by over 5%.
The rebound also happened in the stock market, where top indices like the Dow Jones, Nasdaq 100, and S&P 500 were hovering at their all-time highs as the earnings season continued.
Data shows that WIF’s surge coincided with a sharp increase in futures open interest. According to CoinGlass, open interest rose to $453 million, its highest level since October 1.
Futures open interest is an important data that looks at the volume of unfilled orders in the futures market. These orders can be puts or calls. A put order gives a trader a right but not the obligation to sell, while a call gives them a right but not the obligation to buy. Higher futures open interest is often seen as a positive catalyst for an asset.
WIF’s volume also surged in the spot market. According to CoinGecko, it has over $1.3 billion in volume, higher than that of Dogecoin and Shiba Inu, combined, meaning that it was seeing strong demand.
WIF’s rebound also triggered a wave of shorts liquidations. Shorts worth over $2 million were liquidated on Friday compared to bulls worth $515k. A liquidation happens when brokers close loss-making leveraged trades.
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Dogwifhat price analysis
The daily chart shows that the WIF token bottomed at $1.057 on August 27, and has rebounded by over 150% to $2.67. It has flipped the key resistance point at $2, its highest point on August 24 into a support point.
The 25-day and 50-day Exponential Moving Averages (EMA) have also formed a bullish crossover, meaning that bulls are now in control.
Therefore, the token may continue rising, as bulls target the next key resistance point at $2.87, its highest point on July 22. If this happens, it will confirm the cup and handle pattern that has been forming, and lead to more gains in the near term.
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