Crypto traders claim that Dogwifhat will “likely retest” the critical support level as its price and open interest have both plummeted since July 27.
Solana-based memecoin Dogwifhat open interest (OI) has declined amid a broader price drop since July 27, with traders expecting a near-term retest of a critical support level.
On Aug. 3, Dogwifhat (WIF) OI — which measures the total value of all outstanding or unsettled Dogwifhat futures contracts across exchanges — fell to $252.5 million, approximately 28% down from $353.4 million seven days prior on July 27, according to CoinGlass data.
WIF traded at $1.67 at the time of publication on Aug. 3, down 35.48% since July 27, according to CoinMarketCap data. Several crypto traders expect Dogwifhat to retest the $1.50 level, which has recently been identified as a critical support level.
“WIF, in the daily timeframe, is in a correction phase and is likely to move down toward the lower support trendline between $1.50 and $1.70,” Cryptorphic wrote in an Aug. 2 X post.
“Price is correcting towards the daily support zone,” crypto commentator Scient stated.
“The price of WIF reached my previous target and is now falling again and will likely retest the $1.5 support,” crypto trader CryptoJack added in a post to his 337,000 X followers.
Future traders not hopeful of quick rebound
Future traders are skeptical of a quick rebound, with $11.89 million in short positions at risk if the price recovers to $1.80. Meanwhile, a further 10% decline down to $1.50 would wipe out $7.55 million in long positions.
The price is now significantly further away from the $10 prediction made by Arthur Hayes, the former CEO of BitMEX and current chief investment officer at Maelstrom, in March.
“The hat stays on while I count to $10,” Hayes wrote in a March 14 X post, shortly before WIF hit $3 for the first time.
Cointelegraph reported in June that Dogwifhat had dropped out of the top 50 cryptocurrencies by market capitalization. Since then, it has made a comeback, and is currently ranked at number 47, just above Sui (SUI).
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Source:- COINTELEGRAPH
