The crypto market is experiencing an unexpected revival of meme coins, with Dogwifhat (WIF) at the forefront. This Solana-based token surged by 45% in September, attracting significant attention from investors and analysts. Consequently, Dogwifhat’s strong performance not only boosts its market position but also reignites discussions about the possible comeback of the meme coin trend.
As of September 27, 2024, Dogwifhat has increased by another 26.75% in the past 24 hours, reaching $2.20, according to Brave New Coin’s WIF price data. This rise has pushed its market capitalization above $2 billion for the first time in seven weeks, signaling a robust recovery. Notably, on September 24, Dogwifhat overcame a key resistance level at $1.96, paving the way for its current upward trajectory.
This resurgence is part of a broader trend in the crypto market, where the overall meme coin market cap has grown by 10.9% in the past day. This growth has lifted the total value of meme coins above $51 billion, returning to levels seen before the August downturn. According to CoinGecko, Dogwifhat has ascended to become the fourth-largest meme coin by market capitalization, following Dogecoin and Shiba Inu.
Source: BNC
Solana-based Memecoins Dominate Returns
While established memecoins like Dogecoin and Shiba Inu maintain their top market cap positions, the Solana-based tokens have been stealing the spotlight when it comes to returns on investment. Over the past 30 days, POPCAT and WIF have demonstrated impressive monthly ROIs of 55.40% and 40.82%, respectively, outperforming many of their counterparts in the crypto space.
Despite its remarkable price performance, Dogwifhat has not seen a significant influx of new holders. Data from holderscan.com reveals that only 2,576 new WIF holders have been added over the past seven days, representing a modest 1.43% increase. The total number of holders currently stands at 182,292, with the top 50 holders controlling a substantial 54.84% of the supply.
Source: Holderscan
This slow growth in the holder base suggests that the current rally may be primarily driven by the futures market rather than widespread retail adoption. Supporting this theory is the recent 30% spike in open interest to $233 million, coinciding with WIF breaching the $2 range earlier this week.
Dogwifhat Memecoin’s Soaring Trajectory
The ongoing price surge of Dogwifhat bears striking similarities to the memecoin euphoria witnessed in early 2024. During the first quarter of that year, WIF experienced an astonishing 8,000% ROI in less than three months, catalyzing the rise of other memecoins such as POPCAT, BRETT, and MEW.
As the memecoin market heats up, several analysts are adopting increasingly bullish stances on Dogwifhat’s future. Henrik Zeberg, Head Macro Economist at Swissblock, has identified a potentially explosive price movement for WIF. According to Zeberg, the token is “breaking out of a long ABCDE-consolidation” and could reach parabolic price targets by November 11, 2024. His chart analysis suggests a possible surge to the $80 range within the next six weeks, representing a mind-boggling 3,526% increase from current price levels.
Source: Swissblock
Adding to the optimistic outlook, independent trader Dentoshi has set an immediate price target for WIF at $3. In a recent post on X (formerly Twitter), Dentoshi explained that WIF has completed a deep retrace from the 0.618-0.707 Fibonacci retracement lines. The trader emphasized the significance of the “golden pocket hold” area between the 0.5 and 0.618 Fibonacci levels, noting that a move above this zone typically indicates a trend reversal.
Source: Dentoshi
Technical Analysis Supports Bullish Sentiment
From a technical analysis perspective, Dogwifhat’s chart is displaying several bullish confirmations. On the daily timeframe, the price has successfully broken above a falling wedge pattern and closed strongly above the key resistance level of $1.95. This resistance level coincides with the 0.618 Fibonacci level, which may now serve as a support point in future price action.
Currently, the immediate price target for WIF lies in the $2.85-$3.00 range, with a crucial reclaim level at $2.45-$2.50. Market observers anticipate that WIF may experience a strong pullback to the $2 support level or continue its ascent to retest the $3 mark in the coming days.
