Dogwifhat Surges 5.4%, Reaches Two-Month High as Market Momentum Builds

Dogwifhat Surges 5.4%, Reaches Two-Month High as Market Momentum Builds

On Monday, Dogwifhat (WIF), the Solana-based meme cryptocurrency, surged by 5.4%, hitting a two-month peak at $2.77. This price movement was supported by buyers’ attempts to break through a key 190-day resistance level, coupled with a significant rise in open interest (OI) for Dogwifhat futures. With this bullish momentum, investors are wondering: could WIF lead the meme coin rally in October?

Dogwifhat Poised for a 50% Surge After Breaking Key Barrier

Over the past four days, WIF price has climbed from $2 to $2.70, representing a remarkable 34% increase. As a result, the meme coin’s market cap surged to $2.67 billion. This upward trend has overshadowed the bearish pressure that arose due to geopolitical tensions like the Israel-Iran conflict, with Dogwifhat breaking through the critical $2.50 resistance level.

A technical analysis of the daily chart reveals a wedge pattern that formed during a six-month correction phase, pushing the price down to a low of $1 in early August. However, the breakout from this wedge now signals a major trend reversal. If buying pressure remains strong, WIF could see a rally of up to 54%, targeting $4.08 as the next major level. If the $4.08 level is breached, the price could potentially challenge the previous peak of $4.86.

Moreover, a potential bullish crossover between the 50-day and 100-day exponential moving averages (EMA) is likely to accelerate the coin’s recovery and strengthen the ongoing rally.

WIF Buyers Spark 190-Day Trend Reversal

According to Coinglass, open interest for Dogwifhat has surged dramatically since mid-September, rising from $195.7 million to $370 million—an 89% increase. This growing OI indicates heightened participation in Dogwifhat futures, as traders position themselves for potential price swings.

The Average Directional Index (ADX), a momentum indicator, currently stands at 28%, nearing overbought levels. Historically, this ADX value suggests that buyers may soon experience exhaustion, potentially leading to a short-term pullback before resuming the upward trend. However, if Dogwifhat fails to maintain support at $2, it could face a significant drop, potentially revisiting the $1 level.