The coin known as dogwifhat (WIF), which is based on a dog-themed meme and is only five months old, has experienced a significant increase in price amidst a generally positive market sentiment. However, some traders are anticipating a potential decrease in value.
As of the time of writing, WIF has surged by 14% in the last 24 hours and is currently trading at $3.85. Earlier today, the meme coin reached an intraday high of $4.05, a level not seen since early April. With a market cap of $3.85 billion, WIF currently ranks as the 28th largest cryptocurrency in the market.
The daily trading volume of the meme coin has surpassed $1.5 billion following a 33% increase over the past day. Data from Santiment indicates that WIF’s total open interest has risen by 17.7% in the last 24 hours, climbing from $374.9 million to $441.2 million. A sudden surge in open interest often indicates high price volatility and the possibility of liquidations.
Furthermore, Santiment’s data reveals that the total funding rate for WIF has dropped from 0.043% to 0.019% over the past day, suggesting an increase in traders betting on a decline in the coin’s price. The Relative Strength Index (RSI) for WIF has also increased from 61 to 65 in the same period, indicating that the meme coin is currently overbought and susceptible to potential price manipulation by large traders.
Given these factors, it is possible that the price of dogwifhat may experience sudden fluctuations as traders seek short-term profits and liquidations occur. This situation could be further influenced by the entry of Solana into Terraform’s Pulsar Finance multichain portfolio tracker.