The Dogwifhat price continued soaring this week as investors rotated to Solana meme coins for strong returns. The WIF token jumped to a high of $1.3315 on Monday, its highest level since January 24, and is 330% above its lowest level this year. This surge has made WIF the fourth-biggest Solana meme coin after Trump, Bonk, and Fartcoin.
Why WIF Price is Soaring
Dogwifhat price rallied because of the recent surge of most Solana meme coins. A quick look at CoinGecko shows that all of these meme coins have soared in the last few weeks, bringing the total market cap to $14.3 billion, up from $6 billion in April. Some of the best performers were Popcat, Peanut the Squirrel, Moo Deng, and Goatseus Maximus.
Dogwifhat surged in a high-volume environment, with the 24-hour figure soaring to over $2 billion, higher than its market cap of over $1.1 billion. Its futures open interest rose to over $449 million, the highest level since January 7. A higher open interest indicates that investors expect the price to continue growing in the near term.
Further, Dogwifhat jumped as the funding rate remained at a positive level, indicating that the futures price is higher than the spot price. That is a sign that investors anticipate that the future price will be higher than the current one.
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Dogwifhat’s price also rose because of macro factors, as the United States reached a truce with China, the second-biggest economy in the world. The two countries decided to reduce their tariffs for three months while they continued negotiating.
Moreover, crypto investors are becoming greedy as the fear and greed index has risen to 70, in the greed zone. Historically, meme coins like WIF perform well when there is a heightened sense of fear in the market.
Dogwifhat Price Analysis
The daily chart indicates that the WIF price fell to a low of $0.3037 in April and then rebounded to the current $1.3315, the highest level since January 23. It crossed the important resistance level at $0.7865, the neckline of the small inverse head and shoulders pattern.
WIF price has moved above the key resistance level at $1.0830, the lowest swing on August 5 last year. It has also jumped above the 50-day moving average.
Therefore, the coin will likely continue to rise in the coming weeks as risks have slightly eased. The next key level to watch will be the psychological point at $2.
However, it is highly unlikely that the WIF price will jump and hit its all-time high of almost $5 in the current cycle. The potential top will be at $3. A drop below the support at $0.50 would invalidate the bullish outlook.
