Dogwifhat (WIF) has risen 10% in the last 24 hours, reaching a high of $2.20. The market cap has recovered across the board, surpassing $2 billion for the first time in seven weeks.
WIF flipped a major resistance level on September 24 after the token rallied above $1.96. The price action is currently gaining a bullish trend, with memecoin targeting the next resistance level of $2.85.
Dogwifhat 1-day chart. Source: TradingView
Dogwifhat leads memecoin rally, but holder growth slows
The Mimecoin market cap is now up 6.8% over the last 24 hours, surpassing $51 billion and recovering to levels prior to the August crash. According to data from CoinGecko, Dogwifhat is still the fourth-largest Mimecoin in the industry.
While OG meme tokens like Dogecoin and Shiba Inu still lead in terms of market cap, Solana-based meme coins have the upper hand in terms of 30-day returns, with POPCAT and WIF delivering monthly returns on investment (ROI) of 52.9% and 24.2%, respectively.
Memecoin ranking by market cap. Source: CoinGecko
However, despite being one of the best performing companies, WIF has not seen any new investors enter the market.
Related: Why did Dogecoin price go up today?
According to the latest data from holderscan.com, there have been only 2,322 new WIF holders, or 1.29%, added in the last 7 days. The total number of holders remains at 182,877, but the top 50 holders account for nearly 54.84% of the supply.
Dogwifhat token details chart. Source: holderscan.com
WIF’s slow holder trend suggests that the futures market is potentially driving the current rally. According to Cointelegraph, open interest surged 30% to $233 million earlier this week when WIF broke through the $2 range.
If WIF enthusiasm picks up again, will the price go up to $3?
The current price rally of WIF shows similarities to the early 2024 Mimecoin craze. The Q1 rally was notable for WIF having an 8,000% ROI in less than 3 months, which led to the rise of other Mimecoins such as POPCAT, BRETT, and MEW.
Now, a similar sentiment is building as several analysts turn bullish. Swissblock’s Chief Macroeconomist Henrik Zeberg notes that the WIF is currently “moving out of a long ABCDE consolidation” and gives a parabolic price target until November 11, 2024.
The chart below projects a whopping $80 range over the next 6 weeks, which would represent a 3526% increase from the current price.
WIF forecast chart by Henrik Zeberg. Source: X.com
Another independent trader, Dentosi, has mentioned WIF’s immediate price target as a resistance level of $3.
In the X post, the trader explains that WIF completed a deep correction at the 0.618-0.707 Fibonacci correction line. While the golden zone or reversal range is between 0.5 and 0.618, Dentoshi calls this area the “golden pocket hold.”
Analysis of the WIF market in Dento City. Source: X.com
The trader emphasizes that the move up from the Golden Pocket is indicative of a trend reversal, given that the previous high of $4.83 was not a trend high. After breaking above $2, Dentoshi says:
“Hello. Please send me $3 (or more).”
Meanwhile, on the 1-day chart, WIF has some bullish confirmations. The price broke out of the falling wedge pattern and closed strongly above the major resistance level of $1.95. As explained below, the resistance level of $1.95 coincides with the 0.618 level, which could act as a support point going forward.
WIF 1-day chart. Source: TradingView
The current immediate price target for WIF is $2.85-$3.00, with a major recovery target of $2.45-$2.50. At this point, WIF could face a strong pullback to $2 support or continue to retest $3 in the coming days.
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.