WIF open interest increased 16%, trader says ‘no one is ready’ to reverse.
Futures traders are increasing their positions in Solana-based memecoin Dogwifhat, which analysts say is trading 66% below its March all-time high, indicating a potential reversal.
As of August 31, Dogwifhat Open Interest (OI) – the total number of Dogwifhat futures contracts that have not yet been terminated or expired, according to CoinGlass data – increased by 16% to $231.48 million.
Traders say market participants are not ready for a Wi-Fi reversal.
Meanwhile, the price of Dogwhiphat (YF) has fallen 17 percent since August 25, now trading at $1.57, a ten-day low below $1.90, according to CoinMarketCap data.
The stalled price has not been reached since July 30, with some traders believing the price is due for a return to $2.40.
One price returned to .40, representing a 52.80% increase from the current price. Source: Bluntz
“Perfect channel test with $WIF,” wrote anonymous crypto analyst Bluntz in a September 3 X post.
“No one is ready for the inversion of the V that's going to happen,” Bluntz added.
As of September 4, DogwhipHat had a total trading volume of $327.6 million, roughly double that of Shiba Inu (SHIB), the second largest memecoin by market capitalization, which recorded $160.5 million in the same 24-hour period.
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Meanwhile, anonymous crypto trader Zero0 commented on September 4 that Dogwhiphat “looks ready for its next leg.”
“Is the hat still there?” Added zer0.
WIF started the year strong but lost momentum
The asset is down 66 percent from its March 31 high of $4.70.
A crowdfunding campaign was set up for the Dogwifhat mascot to appear on the Las Vegas Strip in March, when WIF prices were at their peak. About $700,000 has been raised, but it hasn't happened yet, although the organizers are confident it will continue.
On March 14, Arthur Hayes, former CEO of BitMEX and current Chief Investment Officer of Maelstrom, said: “When I count $10, the hat remains.”
However, while the year has been promising, altcoins have yet to rally as expected.
A crypto analyst says the recent altcoin season won't turn out as expected because new crypto traders are rushing to buy highly speculative assets.
“The joke's been told, everybody knows the punchline, and they've gone straight to the punchline, and it's not funny anymore,” Glassnode lead analyst James Cheek commented on the Rough Consensus podcast on August 29.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
