Traders predict downturn as WIF hits highest point in two months
The meme coin known as dogwifhat (WIF) has experienced a significant price surge, defying market expectations of a downturn. Over the past 24 hours, WIF has increased by 14% and is currently being traded at $3.85. Earlier today, the coin reached a peak of $4.05, a level not seen since April. With a market cap of $3.85 billion, WIF now ranks as the 28th-largest cryptocurrency.
Furthermore, WIF’s daily trading volume has exceeded $1.5 billion, representing a 33% surge in the past day alone. Santiment data reveals that WIF’s total open interest has also risen by 17.7% from $374.9 million to $441.2 million within the same time period. Such a sudden increase in open interest often indicates a high level of price volatility, potentially leading to liquidations.
Interestingly, Santiment’s data also indicates a significant decrease in the total funding rate aggregated by WIF, falling from 0.043% to 0.019% in the past 24 hours. This suggests that there is a substantial increase in traders betting on the meme coin’s price decline.
Additionally, WIF’s Relative Strength Index (RSI) has risen from 61 to 65 within the past 24 hours. This RSI reading indicates that the dog-themed meme coin is currently overbought, and there may even be instances of price manipulation by influential investors.
As a result, it is expected that the price of dogwifhat could experience sudden movements as traders aim to secure short-term profits and liquidations become more prevalent.
