The open interest for Dogwifhat (WIF), a Solana-based memecoin, surged by 16%, reaching $231.48 million in futures contracts since August 31. This increase has attracted significant attention, especially as the asset’s price has remained stagnant around $1.57, down 17% since August 25. The price has been under $1.90 for over ten days, sparking speculation about a potential reversal. Some analysts believe that WIF might rebound to $2.40, representing a 52% increase from its current price.
A key catalyst behind this sentiment is a possible technical reversal pattern identified by crypto analysts like Bluntz. He mentioned on September 3 that “nobody is ready for the V reversal that’s about to happen.” This aligns with the overall increase in trading activity, with WIF registering a daily trading volume of $327.6 million as of September 4, double that of Shiba Inu, the second-largest memecoin by market capitalization.
Despite this positive outlook, WIF is still 66% below its all-time high of $4.70 from March. While it started 2024 strong, WIF and other altcoins have yet to deliver the bullish momentum that many traders had anticipated. Analysts also warn that over-eager speculation in the altcoin space could delay the much-hyped “altcoin season,” further complicating predictions for assets like WIF