The five-month-old dog-themed meme coin, dogwifhat (WIF), has recorded an impressive price surge amid market-wide bullish sentiment, although some traders expect a potential downturn.
WIF is up by 14% in the past 24 hours, trading at $3.85 when writing. The meme coin briefly touched an intraday high of $4.05 earlier today — a level last seen in early April. With a market cap of $3.85 billion, WIF is currently the 28th-largest cryptocurrency.
The meme coin’s daily trading volume has surpassed the $1.5 billion mark, following a 33% surge over the past day; according to data provided by Santiment, WIF’s total open interest increased by 17.7% in the past 24 hours, rising from $374.9 million to $441.2 million. This spike in open interest suggests potential high price volatility due to possible liquidations.
Santiment data also indicates that WIF’s total funding rate plunged from 0.043% to 0.019% over the past 24 hours. This significant decrease shows increased traders betting on the meme coin’s price decline. Additionally, the WIF Relative Strength Index (RSI) rose from 61 to 65, suggesting that the coin is currently overbought, with potential whale price manipulation in play.
Given the current market conditions, WIF’s price could witness sudden movements as traders might take short-term profits and incoming liquidations could impact the market. The overbought status of the coin and increased short positions indicate that the price could be highly volatile in the near future.
