Dogwifhat (WIF), a Solana-based Mimecoin project, rose 13% in a single day, reaching a high of $1.77 on August 6. This is part of a rally that followed a 63% drop in the WIF price from its all-time high of $2.89 two weeks ago.
According to data from Cointelegraph Markets Pro and TradingView, WIF rose 66% from its low of $1.07 on August 7 to an intraday high of $1.77 on August 6.
In comparison, according to data from CoinMarketCap, while most of the largest cryptocurrencies by market cap in the sector recorded losses on August 7, Mimecoin’s overall market cap rose by 5.3%.
“Solana’s mimecoin $WIF is the biggest gainer among the top 100 coins by market cap,” SolanaFloor, a Solana news source, declared in an August 7 post to X.
Dogwifhat is the fourth largest meme coin by market cap, behind Pepe (PEPE). Pepe has a market cap of $3.13 billion, which is nearly double that of Dogwifhat.
Meanwhile, anonymous analyst Kyle Doofs noticed that WIF was trading at $1.74 and said that WIF is the best altcoin to choose from in the Solana ecosystem, despite still facing strong resistance on its recovery path.
“A slight pullback is possible due to the EMA ribbon overhead, but $WIF is still a top pick for #Solana.”
Meanwhile, fellow trader CryptoJack believes that WIF’s recent drop below $1.50 was a “fake breakout” and that Mimecoin is quickly “back in range.”
From a technical perspective, BTC price is forming a V-shaped recovery chart pattern on the daily chart as shown below. The appearance of two green engulfing candlesticks on the daily chart shows that bulls are taking control of the price.
The $1.50 mark is acting as immediate support for Mimecoin. The Relative Strength Index rose from 27 to 38 between August 5 and August 8, indicating that buyers are returning to the scene.
Therefore, if buying increases from the current levels, the price may encounter resistance at the 50-day exponential moving average (EMA) at $2.13 and the 100-day EMA at $2.34 respectively.
If it goes higher, the WIF price could reach the neckline of the dominant chart pattern at $2.90, which would indicate an 80% upside from the current price.
Related: Solana Hits New All-Time Highs Against Ethereum, But Can SOL Price Reach $200?
Meanwhile, demand for leveraged long positions on WIF has surged over the past few days, as reflected in the perpetual futures funding rate.
According to data from Coinglass, the WIF’s permanent funding rate, which plunged into negative territory following the market-wide selloff on August 5, has turned positive.
A positive funding ratio indicates that longs (buyers) want to increase their leverage, while the opposite is true when shorts (sellers) require additional leverage, resulting in a negative funding ratio.
It is worth noting that the current 8-hour rate of 0.0066% translates to a cost of 0.13% over a 7-day period. This is not a big deal for traders building futures positions. Usually, if there is an imbalance due to excessive optimism, the rate can easily exceed 1% per week over the next few 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.