Futures traders are ramping up their positions in Solana-based memecoin Dogwifhat, and analysts have spotted a potential reversal pattern as it trades 66% below its March all-time high.
Since Aug. 31, Dogwifhat open interest (OI) — the total number of Dogwifhat futures contracts that have yet to be settled or expire — has increased 16% to $231.48 million, according to CoinGlass data.
Trader claims market participants not ready for WIF reversal
Meanwhile, the Dogwifhat (WIF) price has dropped 17% since Aug. 25 to $1.57 at the time of writing, remaining below $1.90 for a 10-day period, according to CoinMarketCap data.
Some traders believe the price is due for a rebound back up to $2.40, a level it hasn’t reached since July 30, due to the stagnant price.
A price rebound to .40 represents a 52.80% spike from its current price. Source: Bluntz
“Perfect channel retest on $WIF,” pseudonymous crypto analyst Bluntz wrote in a Sept. 3 X post.
“Nobody is ready for the V reversal that’s about to happen,” Bluntz added.
Since Sept. 4, WIF has recorded a total trading volume of $327.6 million, approximately double that of Shiba Inu (SHIB) — the second-largest memecoin by market capitalization — which saw $160.5 million over the same 24-hour period.
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Meanwhile, pseudonymous crypto trader zer0 opined on Sept. 4 that WIF “looks ready for its next leg up.”
“Is the hat still on?” zer0 added.
WIF kicked off the year strong but lost momentum
The asset is down almost 66% from its all-time high of $4.70, which it reached on March 31. Around that time, analysts made bullish calls that the asset may even double in price.
Around the time WIF hit price highs in March, a crowdfunding campaign was set up to have a Dogwifhat mascot appear on the Las Vegas sphere. Nearly $700,000 was raised, but it has not happened yet, although the organizers remain confident it will still go ahead.
On March 14, Arthur Hayes, the former CEO of BitMEX and current chief investment officer at Maelstrom, said, “The hat stays on while I count to $10.”
However, while the year started off promising, altcoins haven’t yet rallied as expected.
A crypto analyst recently argued that the altcoin season won’t unfold as anticipated because new crypto traders rushed to buy the most speculative assets too soon.
“The joke has been told, everybody knows the punchline, and they’ve just gone straight to the punchline, and it is just not funny anymore,” Glassnode lead analyst James Check opined in an Aug. 29 episode of the Rough Consensus podcast.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.