Memecoin Mania Is Returning—Can DogWifHat Make a Massive Comeback?

Key Insights

• The general crypto market is bearish, with Bitcoin struggling and most sectors in the middle of declines.

• The memecoin market, despite the general sluggishness, is showing surprising strength and has even beaten the AI sector.

• DogWifHat's open interest is soaring, along with its trading volume.

• WIF has recently recovered strongly from a market dump and is trading in a bullish descending wedge.

• A breakout from this wedge formation can propel WIF into a continuation towards $5.

The crypto market is currently sliding further downwards, with Bitcoin seemingly losing the fight around $62,000 and trending at around $58,000.

This bearishness has bled into several other market sectors, including Defi, RWAs, AI cryptocurrencies and NFTs.

The memecoin market has also been one of the worst affected by the market slump, as shown by the 6% slide in its market cap over the last 24 hours before writing.

However, amid this bearishness, this market sector is making impressive moves under the hood, as we will soon see.

DogWifHat, in particular, might be on the verge of something huge.

Here’s why:

The Memecoin Market Is Making a Comeback

AI was the market leader for most of 2024, especially with the sector's strides with applications like OpenAI's Chat GPT and Google's Gemini.

We also saw Worldcoin in the news fairly often, especially in the first quarter of the year before Bitcoin's $73,777 all-time high.

This time around, however, the memecoins are gaining ground and have displaced AI tokens as the top performers.

Kaito AI, a market analytics and intelligence platform, was the first to tweet about this trend.

Amid the market's biggest sectors like GameFi, defi, ETFs and BRC 20s, the memecoin industry performed best, with an impressive 26.77% market cap increase in the last 30 days.

This means that amid the market's general downturn, the memecoin market is turning out to be the most resilient of all and is ahead of the AI tokens by around 3%.

CoinMarketCap data also corroborates this outlook, showing that aside from Ethereum ecosystem cryptocurrencies, memecoins are the sector with the highest average price change.

So Where Does DogWifHat (WIF) Come In?

We have already established that the memecoin market is on the verge of something huge, and here’s where WIF comes into the picture.

Coinglass data, according to the snapshot above, shows that aside from Dogecoin, DogWifHat holds the highest open interest of $219 million (Dogecoin has $468 million).

This means that despite Dogecoin being nearly ten times as large as WIF in terms of market cap, this lowly memecoin still holds its standing against the meme king.

Coinglass data also shows that WIF's trading volume has increased by an impressive 60% over the 24 hours prior to writing. This is second only to PEPE, Mew, and BOME, which have increased by around 75%—80%.

With this combination of open interest and trading volume in mind, we can conclude that WIF is about to pull a massive bullish stunt.

What’s up in the Charts

DogWifHat has declined 6.67% in the 24-hour timeframe. However, according to CoinMarketCap, it has also increased by a staggering 45% over the last week.

This massive bullishness in its weekly timeframe allowed the memecoin to recover strongly from the general market dump from last week.

The charts show that WIF has been trading within a falling wedge formation since its rejection from $4.86.

The impulse recovery from last week allowed the cryptocurrency to cross the $1.6 resistance, which it has now retested nicely, as shown above.

If the bulls continue to push this way, we should see a break above the $2.4 range before an attempt at a breakout from the wedge around $2.63.

If things play out from here, we should see WIF continue upwards and resume its rally towards $5 soon.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.