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Dogwifhat price dipped below $2.8 on Thursday, May 9, down 24% from its monthly peak of $3.7 recorded on Monday: resilient speculative traders continue to place bullish bets on $WIF.
Dogwifhat Extends its lead ahead of $BONK.
Dogwifhat price action in May 2024 began on a positive note as the $WIF further stretched its ahead on $BONK as Solana‘s largest memecoin project by market capitalization. The daily price chart below shows how $WIF price had surged 61.4%, as prices grew from $2.6 to $3.7 between May 1 and May 6.
$BONK’s price also grew significantly within the same timeframe. However, its 42.13% gain is a far cry from $WIF’s 61.44% bounce in the first 5 days of May 2024.
Notably, $WIF price has now retraced 24% in the last 48-hours to find support at the $2.81 territory at the time of writing on May 9. But despite this double-digit pullback, speculative $WIF traders continue to maintain a largely bullish stance.
$WIF Speculative Traders Invest Another $5M Amid Price Dip
Amid the 24% price dip, Dogwifhat investors in the derivatives markets continue to pile on more capital inflows into $WIF futures contracts in high hopes that Solana’s most sought-after memecoin will regain its upward momentum in the near term.
Indicatively, the Coinglass open interest chart below presents the total value of capital currently invested in $WIF perpetual futures contracts. It helps to track the level of investor participation and real-time swings in overall market sentiment.
When the Dogwifhat price pullback began on May 6, $WIF’s open interest stood at $295 million. While prices have slid 24% since then, the latest data shows that $WIF open interest has grown to $300.2 million.
This effectively means that rather than close out their positions amid the price dip, $WIF derivatives traders have doubled-down on their positions with over $5 million capital inflows within the last 48-hours.
Typically, when open interest surges at the onset of a price dip, strategic investors may interpret it to be a positive signal. It essentially indicates that traders are mounting hedge positions, to consolidate on their holdings rather than exit.
$WIF Price Forecast: Bulls Keeping $4 Rebound Hopes Alive
Dogwifhat price has succumbed to a 24% decline after failing to advance above $3.8 on May 6. But with Dogwifhat traders mounting $5 million in fresh capital inflows in the last 48 hours, $WIF price is likely to snap out from the downtrend and make another attempt at reclaiming $4 in the days ahead.
Looking at potential resistance zones ahead, the upper band Bollinger indicator highlights the $3.40 territory as the next major roadblock. A decisive breakout from that resistance cluster could drive the $WIF price above $4, as predicted.
But importantly, to validate this optimistic $WIF price forecast, bulls must avoid a downsing below the $2.50 in the near-term.
As depicted by the lower-limit Bollinger band indicator, losing the $2.45 support could tilt the short-term market momentum in the bear’s direction.