Leading the pack with a 13% rise, the Solana-based memecoin project, Dogwifhat (WIF), is enjoying a noteworthy rebound. This recovery follows the cryptocurrency’s subsequent dip in value by 63% from its high of $2.89 over the past fortnight. Data from TradingView marks a significant rise in WIF’s performance, recording an increase from $1.07 to a high of $1.77 on August 6.
Interestingly, WIF’s gains stand stark in contrast to the overall memecoin market, which is up by a mere 5.3% despite the fact that many major cryptocurrencies registering a downturn on August 7, according to CoinMarketCap data. Furthermore, Solana news source, SolanaFloor, appears buoyant regarding WIF’s performance, declaring it as the top gainer among the 100 leading cryptocurrencies based on market cap.
Currently ranking as the fourth-largest memecoin in terms of market capitalization, Dogwifhat sits below Pepe, boasting twice the former’s market cap with a whopping $3.13 billion. Yet, traders remain optimistic about WIF’s potential, with analyst Kyledoops highlighting its potential as a prime altcoin candidate within the Solana ecosystem. He predicts a possible minor drawback with the EMA Ribbon overhead but maintains that $WIF remains a top pick.
Technical analysis of WIF points towards a V-shaped recovery pattern, backed by two green engulfing candlesticks indicating a bullish control over the price. With the $1.50 mark serving as immediate support and a rise in the relative strength index from 27 to 38 between August 5 and 8, buyer interest in WIF is clearly intensifying.
It is noteworthy that WIF’s perpetual funding rate has turned positive, following a steep fall into the negative after the marketwide sell-off on August 5, as per data from Coinglass. The high demand for leveraged long positions in WIF is suggestive of an overall trend where increased leverage is sought by buyers. The effect is the opposite when sellers need more leverage, indicating a negative funding rate.