Dogwifhat leads the market with 13% gain — What’s driving WIF price?

Dogwifhat ( WIF ), a Solana-based memecoin project, is up 13% in one day, reaching a high of $1.77 on Aug. 6. This is part of a prevailing rebound after WIF’s price dropped 63% from its $2.89 high two weeks ago. 

Data from Cointelegraph Markets Pro and TradingView shows WIF rose from a low of $1.07 on Aug. 7, climbing 66% to an intraday high of $1.77 on Aug. 6.

WIF/USD daily chart. Source: TradingView

In comparison, the total memecoin market capitalization is up 5.3%, despite most of the largest cryptocurrencies by market capitalization in this sector posting losses on Aug. 7, according to data from CoinMarketCap.

Price performance of 10 largest memecoins. Source: CoinMarketCap

“Solana memecoin $WIF becomes the top gainer among the top 100 coins by market cap,” declared Solana news source SolanaFloor in an Aug. 7 post on X.

Dogwifhat remains the fourth largest memecoin by market capitalization, positioned below Pepe ( PEPE ), which has nearly two times the market cap of Dogwifhat at $3.13 billion.

Meanwhile, pseudonymous analyst Kyledoops spotted WIF’s price trading at $1.74 and said that WIF remains a top altcoin to pick within the Solana ecosystem , even though it still faces stiff resistance in its recovery path.

“While a slight pullback is possible with the EMA Ribbon overhead, $WIF remains the top pick on #Solana.”

WIF/USD daily chart. Source: Kyledoops

Meanwhile, fellow trader CryptoJack is of the opinion that WIF’s recent drop below $1.5 was a “fake breakout” as the memecoin quickly “came back inside the range.”

Source: CryptoJack

From a technical point of view, The BTC price is nurturing a V-shaped recovery chart pattern on the daily chart, as shown below. The appearance of two green engulfing candlesticks on the daily chart shows that bulls are taking control of the price.

The $1.50 mark is acting as immediate support for the memecoin. The relative strength index has risen from 27 to 38 between Aug. 5 and Aug. 8, suggesting that the buyers were returning to the scene.

WIF/USD daily chart. Source: TradingView

As such, increased buying from the current levels couldl see the price rise to confront resistance from the 50-day exponential moving average (EMA) and the 100-day EMA at $2.13 and $2.34, respectively.

Higher than that, WIF’s price could rise to hit the neckline of the prevailing chart pattern at $2.90, representing an 80% gain from the current price.

Related: Solana hits new all-time high against Ethereum, but is $200 SOL price within reach?

Meanwhile, the demand for leveraged long positions in WIF has spiked over the last few days, as indicated by perpetual futures funding rate.

Data from Coinglass reveals that WIF’s perpetual funding rate has flipped positive after plunging into the negative region following the Aug. 5 marketwide sell-off.

A positive funding rate indicates that longs (buyers) are seeking increased leverage, while the opposite scenario arises when shorts (sellers) require additional leverage, leading to a negative funding rate.

WIF average perpetual contracts 8-hour funding rate. Source: Coinglass

It’s worth noting that the current 0.0066% eight-hour rate translates to a 0.13% cost over a seven-day period, which is not significant for traders building futures positions. Typically, when there is an imbalance driven by excessive optimism, the rate could easily exceed 1% per week over the next few days.