Memecoins are back? Dogwifhat price rallies 46% in September

Dogwifhat (WIF) has risen 10% in the past 24 hours, reaching a high of $2.20. Its market cap has rebounded comprehensively above $2 billion for the first time in seven weeks.

WIF flipped a key resistance on Sept. 24 after the token rallied above $1.96. Price action is gaining bullish traction at the moment as the memecoin targets the next resistance at $2.85.

Dogwifhat leads memecoin rally but holder growth slows

The memecoin market cap is currently up by 6.8% in the past 24 hours, crossing above $51 billion and reclaiming pre-August crash levels. Data from CoinGecko highlights that Dogwifhat remains the fourth-largest memecoin in the industry.

While OG meme tokens like Dogecoin and Shiba Inu remain on top in terms of market cap, it was observed that Solana-based memecoins dominated the 30-day return with POPCAT, WIF demonstrating 52.9% and 24.2% monthly return on investment (ROI) respectively.

Yet, despite being one of the top performers, WIF has not witnessed an influx of new holders in the market.

Related: Why is Dogecoin price up today?

The latest data from holderscan.com indicates that only 2,322 new WIF holders, i.e. 1.29%, have been added over the past seven days. The total number of holders remains at 182,877, but the top 50 holders represent almost 54.84% of the supply.

A slow holder trend for WIF infers that the futures market is potentially driving the current rally. As reported by Cointelegraph, open interest witnessed a 30% spike to $233 million at the beginning of the week, when WIF breached the $2 range.

Will renewed WIF euphoria push the price to $3?

WIF’s current price rally shows similarities to the memecoin euphoria from early 2024. Q1 rally was strongly represented by WIF 8,000% ROI in less than 3 months, which led to the rise of other memecoins such as POPCAT, BRETT, MEW, etc.

Now, a similar sentiment is brewing as several analysts are flipping bullish. Henrik Zeberg, Head Macro Economist at Swissblock, indicates that WIF is currently “breaking out of a long ABCDE-consolidation” and presents parabolic price targets by Nov. 11, 2024.

The chart below illustrates a whopping $80 range in the next six weeks, which is a 3526% increase from the current price.

Another independent trader, Dentoshi, mentions the immediate price target for WIF at a resistance of $3.

In an X post, the trader explains that WIF has completed a deep retrace from the 0.618-0.707 Fibonacci retracement lines. While the golden zone, or reversal range, lies between 0.5 and 0.618, Dentoshi terms this area the “golden pocket hold.”

The trader highlights that a move above from the golden pocket indicates a trend reversal, considering the previous top at $4.83 is not the trend high. After crossing $2, Dentoshi states,

“Oh, hello there, send it to $3 (and higher).”

Meanwhile, on the one-day chart, WIF has a couple of bullish confirmations. The price broke above a falling wedge pattern and closed strong above key resistance at $1.95. As illustrated below, the resistance at $1.95 also coincides with the 0.618 level, which can act as a point of support going forward.

The immediate price target for WIF currently lies at $2.85-$3.00, with a key reclaim coming at $2.45-$2.50. At this point, WIF may face a strong pullback into support of $2 or continue to retest $3 in the next few days.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.