Crypto traders claim that Dogwifhat will “likely retest” the critical support level as its price and open interest have both plummeted since July 27.
Solana-based memecoin Dogwifhat open interest (OI) has declined amid a broader price drop since July 27, with traders expecting a near-term retest of a critical support level.
On Aug. 3, Dogwifhat (WIF) OI — which measures the total value of all outstanding or unsettled Dogwifhat futures contracts across exchanges — fell to $252.5 million, approximately 28% down from $353.4 million seven days prior on July 27, according to CoinGlass data.
WIF traded at $1.67 at the time of publication on Aug. 3, down 35.48% since July 27, according to CoinMarketCap data. Several crypto traders expect Dogwifhat to retest the $1.50 level, which has recently been identified as a critical support level.
“WIF, in the daily timeframe, is in a correction phase and is likely to move down toward the lower support trendline between $1.50 and $1.70,” Cryptorphic wrote in an Aug. 2 X post.
“Price is correcting towards the daily support zone,” crypto commentator Scient stated.
“The price of WIF reached my previous target and is now falling again and will likely retest the $1.5 support,” crypto trader CryptoJack added in a post to his 337,000 X followers.
Future traders not hopeful of quick rebound
Future traders are skeptical of a quick rebound, with $11.89 million in short positions at risk if the price recovers to $1.80. Meanwhile, a further 10% decline down to $1.50 would wipe out $7.55 million in long positions.
The price is now significantly further away from the $10 prediction made by Arthur Hayes, the former CEO of BitMEX and current chief investment officer at Maelstrom, in March.
“The hat stays on while I count to $10,” Hayes wrote in a March 14 X post, shortly before WIF hit $3 for the first time.
Dogwifhat had dropped out of the top 50 cryptocurrencies by market capitalization. Since then, it has made a comeback, and is currently ranked at number 47, just above Sui (SUI).
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