dogwifhat retests broken trendline: Can WIF rally to new highs now?

• dogwifhat has struggled recently but price action has some positives.
• The crypto fear and greed index at 72.

dogwifhat [WIF] continues to gain attention in the memecoin space, showing signs of potential upward momentum despite a challenging period.

WIF’s recent performance reflects some struggles, with the coin down over 5% in the last 24 hours and over 11% in the past week, as of press time.

However, the past 30 days saw a 3% increase, and dogwifhat showed an impressive 24-hour trading volume of over $490 million, a 36% increase.

This volume-to-market cap ratio of 21% suggests that, despite recent price dips, WIF still attracts considerable interest, implying it may be in a correction phase before resuming upward.

WIF price action and prediction 

Looking at WIF’s price action on the WIF/USDT pair, the coin broke above a significant 3-day trend line, indicating a potential end to the recent bearish trend.

Following this break, dogwifhat retested and began trading above a critical resistance level, which now acts as support.

WIF has continued to hold strong above this level, showing resilience, especially on shorter timeframes like the 1-hour chart.

This support level has also held against downward pushes, keeping WIF on a steady track above its descending trend.

Notably, WIF’s relative strength index (RSI) now sits above the neutral zone, supporting the possibility of a new bullish trend.

Source: TradingView

Analysts suggest that if WIF holds this level, it could push higher, potentially making new highs.

Some believe this could be an early signal of the “memecoin supercycle” expected to boost meme-based tokens next year.

Open interests and sentiment

On the derivatives front, WIF’s Options/Futures OI (Open Interest) Ratio stood at 30%, indicating traders favored futures over options.

This lower percentage of options OI suggests that most activity involves directional bets through futures rather than hedging strategies.

With more traders focused on straightforward long or short positions rather than speculative options strategies, this market dynamic signals strong sentiment toward direct price movement.

It may also reflect a relatively lower expectation of volatility, as futures generally appeal to traders seeking more straightforward price exposure.

Source: Coinglass

Finally, WIF’s market outlook aligns with broader market sentiment, as the crypto Fear & Greed Index currently sits at 72, indicating “greed.”

In crypto markets, high levels of greed can often suggest a time for profit-taking, though WIF’s unique trend hints it could follow its course.

Traders might find value in waiting for sentiment to drop closer to neutral, creating alignment with the broader market.

Source: Coinglass

This strategy could help avoid extended periods of sideways trading while waiting for another rally.

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WIF’s recent price action, low options ratio, and alignment with general market sentiment make it a noteworthy token.

With the anticipated memecoin cycle on the horizon, dogwifhat remains a coin to watch for potential gains.