dogwifhat volume surges 128% to $190M – $0.26 next for WIF if supply breaks

dogwifhat [WIF] has seen a massive price surge, driven by growing demand across the market, mostly in the perpetual market, where traders across multiple exchanges are buying WIF.

Presently, WIF’s perpetual market volume has crossed $190 million, surging by over 128%, according to CoinGlass.

Traders recorded higher buying volumes than selling volumes on seven of the top 10 exchanges where WIF is traded, including Binance, Bybit, KuCoin, Gate, and Hyperliquid. This is net positive for the price and could support further upside.

The surge in volume alongside the price suggests that market momentum is strengthening, which could potentially drive demand for WIF even higher.

More critical is the role of Binance and Hyperliquid in sustaining the rally, as both currently control the largest Open Interest at $16.30 million and $15.44 million, respectively. With buying volume rising and Funding Rates positive on both exchanges, the rally could continue.

Can momentum overcome this pressure?

The recent rally follows WIF’s breach of a structural pattern on the chart, as the token exited a descending triangle that preceded the rally. The surge has now pushed WIF into a structural supply level on the chart.

Areas like this tend to contain major sell orders that can often force the price lower. The level has rejected the price four times, suggesting that it could potentially have a similar effect again.

If the asset breaches this level, it could see a major swing toward $0.25 to $0.26, which currently represents a key price target.

Technically, when a supply or demand zone is tested multiple times, it often weakens as most of the sell orders at that level have been cleared. If that is the case, there is a high chance that WIF could rally past the current supply zone and reach the set target.

The market could rally, but risk remains

The market structure remains bullish, supported by the present indicators. The Chaikin Money Flow (CMF), which measures buying and selling pressure through volume, shows that buyers are dominating.

The CMF is trading well within the positive zone, with a reading of 0.20, while pointing upward. This indicates that buying volume continues to grow and is outweighing selling pressure in the market.

However, traders should remain cautious as the Relative Strength Index (RSI) has crossed into the overbought zone. The indicator measures the speed and magnitude of price changes.

Presently, the RSI is trading above the 70 mark, suggesting aggressive buying. Such momentum is typically difficult to sustain over the long term, and a decline can follow.

Notably, there is no fixed timeline for when this decline could occur. The RSI only indicates that the market is highly bullish and that the price could see a pullback in the short to near term. For now, traders could maintain a bullish stance, but selling pressure appears to be looming.

Final Summary

• dogwifhat’s perpetual market volume surged 128% to above $190 million, with buying pressure dominating several major exchanges.
• WIF remains bullish, but its overbought RSI and nearby supply zone could trigger selling pressure if momentum weakens.