Crypto traders anticipate Dogwifhat will “likely retest” a key support level as both its price and open interest drop from the last seven days.
Since July 27, the Solana-based memecoin Dogwifhat has experienced a significant drop in both open interest (OI) and price. Traders are now bracing for a near-term retest of a critical support level.
As of August 3, the open interest (OI) for Dogwifhat (WIF)—which represents the total value of all open futures contracts—has decreased to $252.5 million, down 28% from $353.4 million on July 27, according to CoinGlass.
Currently priced at $1.70, WIF has dropped over 35% in the last seven days, as noted by CoinMarketCap. Traders are now anticipating that Dogwifhat will soon revisit the key $1.50 support level.
“WIF, in the daily timeframe, is in a correction phase and is likely to move down toward the lower support trendline between $1.50 and $1.70,” Cryptorphic wrote in an August 2 X post.
“Price is correcting towards the daily support zone,” crypto commentator Scient stated.
“The price of WIF reached my previous target and is now falling again and will likely retest the $1.5 support,” crypto trader CryptoJack stated in a X post to his 337.2k X followers.
WIF Price: Risks to short and long positions
Traders are doubtful about a quick recovery. If the price climbs to $1.80, $11.89 million in short positions could be at risk. On the other hand, if it falls to $1.50, $7.55 million in long positions could be lost.
At present, the price is still significantly below the $10 target set by Arthur Hayes, former CEO of BitMEX and current chief investment officer at Maelstrom, in March.
“The hat stays on while I count to $10,” Hayes posted on March 14, just before WIF first reached $3.
In June, Dogwifhat had fallen out of the top 50 cryptocurrencies by market cap. Since then, it has rebounded and is now ranked 47th, just ahead of Sui (SUI).
