Dogwifhat Traders Anticipate Reversal Despite 66% Decline from March Peak

Futures traders are increasingly bullish on the Solana-based memecoin Dogwifhat (WIF), despite its current struggles. Analysts have spotted a potential reversal pattern, sparking hopes that the token could recover after a significant drop in value. WIF is currently trading 66% below its all-time high of $4.70, reached in March 2024.

According to data from CoinGlass, Dogwifhat open interest (OI) — representing the total number of unsettled futures contracts — has surged 16% since August 31, rising to $231.48 million. This signals growing confidence among futures traders that a reversal may be imminent. Some analysts, like the pseudonymous trader Bluntz, have expressed optimism about WIF’s price potential.

In a September 3 post on X, Bluntz noted a “perfect channel retest” for the asset and claimed that no one is prepared for the “V-shaped reversal” that could unfold.

Dogwifhat’s Price Stagnant

Despite this optimism, Dogwifhat’s price has remained stagnant in recent weeks. It has dropped 17% since August 25, currently hovering around $1.57, according to CoinMarketCap. The token has stayed below $1.90 for over 10 days, prompting some traders to bet on a return to its July 30 price level of $2.40.

Crypto trader zer0 also chimed in on the potential rebound, stating that WIF “looks ready for its next leg up.”

WIF’s Performance

Earlier this year, WIF enjoyed a strong start but quickly lost momentum. Back in March, the token hit its all-time high, and bullish predictions suggested it could double in price. During this period, a crowdfunding campaign aimed to feature a Dogwifhat mascot on the Las Vegas sphere, raising nearly $700,000. However, the campaign has yet to materialize, though organizers remain optimistic about its success.

Since September 4, Dogwifhat has registered $327.6 million in trading volume, roughly double the trading volume of Shiba Inu, the second-largest memecoin by market capitalization.

Arthur Hayes, former CEO of BitMEX, also expressed support for the token back in March, famously stating, “The hat stays on while I count to $10.” But as the year has progressed, altcoins like WIF have not rallied as anticipated.