Dogwifhat Price Surge Continues Amid Memecoin Rally

According to Cointelegraph, Dogwifhat (WIF), the largest Solana-based memecoin by market capitalization, has continued its recovery that began on Sept. 8. WIF has surged approximately 112% from its Sept. 6 low of around $1.4, reaching a four-month high of $2.97 on Oct. 16. Currently, WIF is trading at $2.63, marking a 3% increase over the past 24 hours and a 76% rise over the last 30 days. Dogwifhat's bullish performance aligns with similar upward trends in other top memecoins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), which have seen gains of 23%, 9.8%, and 9.2% respectively over the past week. Among these, WIF has shown the most significant monthly gains, with a 30-day return of around 76%, surpassing DOGE's 34% and SHIB's 43%. In 2024, WIF has achieved year-to-date returns of approximately 1,392%, second only to Turbo (TURBO), a ChatGPT-coded memecoin that surged by around 4,570%. These substantial gains have likely attracted investor interest, leading to increased buying pressure. The rise in WIF's price over the last 30 days coincides with a significant increase in its open interest (OI). OI, a key metric for assessing market sentiment, rose by 50% from $322.2 million on Oct. 4 to a five-month high of $480.2 million on Oct. 15. Additional data from CoinGlass indicates growing demand for leveraged long positions in WIF, as shown by the OI-weighted futures funding rate. The current 0.0068% eight-hour rate translates to a 0.14% cost over seven days, suggesting that futures traders are bullish and expect further price increases. From a technical perspective, WIF's price action since early September has formed an ascending parallel channel on the daily chart. The lower boundary of the channel at $2.50 serves as immediate support, while the relative strength index (RSI) at 59 indicates favorable market conditions for further upside. Increased buying from current levels could push WIF's price to confront resistance at the middle boundary of the rising channel at $2.91. If it surpasses this level, WIF could reach the upper boundary at $3.42, representing a 28% gain from the current price. However, futures traders remain cautious, with $22.92 million in short positions at risk of liquidation if the price recovers to $3. A 5% decline to $2.5 would result in $3.84 million in long positions being wiped out. 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.