Dogwifhat Open Interest (OI), a Solana-based Mimecoin, has been declining since July 27 due to the price crash, and traders are expecting a retest of key support levels in the short term.
According to CoinGlass data, Dogwifhat (WIF) OI (measuring the total value of Dogwifhat futures contracts outstanding or unsettled across exchanges) fell to $252.5 million on August 3, down about 28% from $353.4 million seven days earlier on July 27.
According to CoinMarketCap data, WIF was trading at $1.67 at the time of publication on August 3, down 35.48% since July 27. Several cryptocurrency traders expect Dogwifhat to retest the $1.50 level, which was recently identified as a significant support level.
“On the daily timeframe, WIF is in a correction phase and is likely to fall towards the lower support trendline between $1.50 and $1.70,” Cryptorphic wrote in an August 2 post to X.
“Price is correcting towards the daily support zone,” said cryptocurrency commentator Scient.
“WIF price has reached its previous target but is now moving lower again and is likely to retest the $1.50 support level,” cryptocurrency trader CryptoJack wrote to his 337,000 followers.
Futures traders don’t expect a quick rebound
Futures traders are skeptical of a quick rebound, with $11.89 million in short positions at risk if the price recovers to $1.80. Meanwhile, a further 10% drop to $1.50 would wipe out $7.55 million in long positions.
Related: Dogwifhat Up 16% — WIF Price Seeks Further Upside as Solana ETF Hype Spreads
The current price is a significant distance from the $10 level predicted in March by Arthur Hayes, former CEO of BitMEX and current CIO of Maelstrom.
“Hats off while I count to $10,” Hayes wrote on X on March 14, just before WIF first hit $3.
Cointelegraph reported in June that Dogwifhat had dropped out of the top 50 cryptocurrencies by market cap. It has since recovered and is currently ranked 47th, just above Sui (SUI).
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This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.