Memecoins regained some traction as the broader crypto market staged a modest recovery. As of writing, dogwifhat [WIF] rose about 13% over the past 24 hours.
Despite the bounce, underlying metrics showed the memecoin remained locked inside a prolonged consolidation range.
WIF tests wedge resistance
The price action charts for dogwifhat [WIF] in the daily timeframe indicated a clear picture. The memecoin has been trading inside a massive multi-month wedge pattern since May last year.
Despite WIF having momentum, as seen from the indicator readings, its price was struggling to break out of the 7-month correction.
The Stochastic Momentum Index (SMI) was at 41, suggesting overbought conditions. However, the signal was bullish, as the SMI was above the signal line, which was at 11.8.
Additionally, the Chaikin Money Flow (CMF) showed that traders were pumping capital into the memecoin. This was evident as two whales purchased more than $2.50 million in WIF tokens over the past 48 hours.
Such activity suggests that a breakout from the consolidation could be a matter of time. Still, that did not rule out continued price tightening inside the wedge pattern.
Funding rates turn green as OI spikes
Derivative data showed improving sentiment among leveraged traders. Funding Rates turned positive across most venues.
Hyperliquid, Binance, OKX, BitMEX, and WOO X recorded positive Funding Rates. Bybit and Kraken remained marginally negative.
Furthermore, Open Interest (OI) spiked from a low of $55 million to almost $100 million at the time of writing. Binance had the highest OI among all exchanges, which accounted for about $35 million, which was $3 million more than that on Bybit.
The result was positive for WIF, further increasing the chances of a breakout. However, the activity of spot holders challenged this potential breakout.
Holders selling their WIF tokens
That said, the WIF price was rising, but trading activity was alarming. The number of holders grew slightly to around 247,849, according to Solscan data.
What was worrying was the fact that these holders were selling their tokens.
As per Dune Analytics data, the reading of Buys vs. Sells from the transaction count was at negative 91. This meant there was more buying than selling, which challenged the looming breakout.
Altogether, the sentiment was mixed, though there was more alignment toward bullishness than bearishness. Still, selling could derail price appreciation.
Final Thoughts
- WIF’s setup reflected a familiar tension between improving derivative sentiment and hesitant spot participation.
- If leverage continues building without spot confirmation, volatility may increase near resistance.
