Dogwifhat (WIF) Surges 5.4%, Hitting Two-Month High Amid Market Uptick

The Solana-based meme cryptocurrency Dogwifhat (WIF) saw a significant 5.4% price increase on Monday, reaching a two-month high of $2.77. This bullish momentum was fueled by buyers attempting to break through a 190-day resistance level, coupled with a notable spike in futures open interest (OI). As the meme coin market shows signs of revival, many are wondering if Dogwifhat will lead the charge in October.

WIF Price Poised for Potential 50% Rally as Key Resistance Falls

Over the past four days, Dogwifhat’s price has surged from $2 to $2.7, marking an impressive 34% gain. This price action has propelled the altcoin’s market capitalization to $2.67 billion, overcoming recent bearish pressure stemming from geopolitical tensions and breaching the critical $2.5 level.

A closer look at the daily chart reveals that two converging trendlines had driven a steady 6-month correction, pushing the price down to $1 in early August. The recent breakout from this wedge pattern signals a potential major trend reversal for WIF. Should buying pressure persist, we could see a further 54% rally, potentially driving the price towards $4.08 before challenging the previous peak of $4.86.

Adding to the bullish outlook, a potential crossover between the 50-day and 100-day exponential moving averages could further accelerate the recovery momentum and support a sustained upward trend.

WIF Futures Open Interest Surges, Signaling Growing Market Participation

Data from Coinglass shows that WIF open interest has dramatically increased since mid-September, rising from $195.7 million to $370 million – an impressive 89% growth. This sharp uptick in open interest indicates growing participation in the WIF futures market, suggesting traders are building up substantial positions in anticipation of significant near-term price movements.

The Average Directional Index (ADX) currently stands at 28%, approaching overbought territory. While this signals strong bullish momentum, it also suggests that buyers may soon face exhaustion and require a pullback to regroup before continuing the upward trend.

Traders should remain cautious, as a break below the $2 support level could potentially trigger a more significant drop towards the $1 mark.

As always, investors are advised to conduct thorough research and consider multiple factors before making any investment decisions in the volatile cryptocurrency market.