Breaking down dogwifhat’s 13% surge – Can WIF flip $1?

Key Takeaways

• dogwifhat surged 13.69%, attracting strong buyer momentum, rising futures interest, and profit-taking, with bullish signals pointing to a potential rally toward $1.18, if selling pressure eases.

dogwifhat [WIF] rallied 13.69% by bouncing off its recent bottom of $0.82, reaching a monthly high of $0.982 before retracing to $0.968, at press time. 

This price surge propelled the memecoin’s market cap to $978 million, representing a 14.2% increase. At the same time, dogwifhat’s trading volume spiked by 105% to $500 million, signalling increased capital flow. 

Buyers make a strong comeback 

After sitting on the sidelines, dogwifhat investors have returned to the market with strength. For the first time in over a month, the memecoin has recorded three consecutive days of a positive Buy-Sell Delta. 

According to Coinalyze, WIF saw 17.3 million in Buy Volume compared to 16 million in Sell Volume on the 10th of July.

Over the past three days, the memecoin has recorded a cumulative total of 91.79 million in Buy volume. 

Over the same period, the memecoin saw $89.52 million in Sell Volume. As a result, WIF recorded a positive Buy-Sell Delta of 2.27 million. 

Such a sustained period of significant pressure indicates that buyers are dominating the market, outpacing sellers.

Historically, such a market set-up has preceded higher prices as upward pressure on the asset intensifies. 

Futures chasing the rally  

Looking at dogwifhat’s Futures, we determined that investors were aggressively positioning themselves, awaiting the next move. 

According to Santiment data, WIF’s Funding Rate Aggregated by Exchange turned positive again.

On the 10th of July, the Funding Rate was 0.005, a reversal to positive after dropping the previous day. 

When this metric turns positive, it indicates that investors are taking long positions. Typically, a higher demand for longs suggests that investors are betting on prices to continue rising. 

Profit takers not left behind

WIF’s surge to a monthly high offered underwater investors a chance to take profits. CoinGlass data shows Exchange Netflow spiked to $2.73 million during the rally, signaling heavy selling. 

At press time, Netflow has dropped to $531.6K, confirming a wave of profit-taking activity.

Typically, when investors turn to profit-taking during a trend shift, it tends to derail a potential rally due to high selling pressure. 

dogwifhat at crossroad: Which way?

According to AMBCrypto’s analysis, WIF saw a strong price upsurge as buyers returned with strength. 

At the time of writing, WIF’s MACD climbed to 0.016, signaling strong bullish momentum and a potential continuation of the rally. 

This rising indicator suggests WIF is posting higher highs as buyers dominate the market. 

If accumulation continues, the token could flip the $1 resistance into support and aim for $1.18. 

However, if profit-taking intensifies, a pullback toward $0.84 may be unavoidable.