The open interest (OI) in Dogwifhat futures has spiked, signaling increased trading activity among futures traders.
The open interest (OI) in Dogwifhat futures has spiked, signaling increased trading activity among futures traders.
Dogwifhat, a Solana-based meme-coin, has been trading below $1.90 since August 25, and analysts have now spotted a potential reversal pattern forming.
According to CoinGlass data, Dogwifhat's open interest has increased by 16% to $231.48 million since August 31. This indicates that futures traders are ramping up their positions in the asset, potentially anticipating a price reversal.
Coinciding with the surge in open interest, the price of Dogwifhat (WIF) has dropped 17% since August 25, trading at $1.57 at the time of writing.
The asset has remained below the $1.90 mark for a 10-day period, according to CoinMarketCap data.
Some traders believe that the price is due for a rebound back up to $2.40, a level it hasn't reached since July 30.
Pseudonymous crypto analyst Bluntz wrote in a September 3 post on X that the asset is experiencing a "perfect channel retest" and that "nobody is ready for the V reversal that's about to happen."
Dogwifhat has seen a significant increase in trading volume recently. On September 4, the asset recorded a total trading volume of $327.6 million, which is approximately double the volume of Shiba Inu (SHIB), the second-largest meme-coin by market capitalization, which saw $160.5 million in the same 24-hour period.
Pseudonymous crypto trader zer0 also noted on September 4 that Dogwifhat "looks ready for its next leg up," further fueling the possibility of a price reversal.
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