Key Takeaways:
dogwifhat (WIF) rose 13% on Aug. 25, pushing its weekly gain past 50%, as perpetual futures volume jumped 128% to $190 million, CoinGlass data shows.
Buying volume exceeded selling on seven of the top 10 exchanges where WIF trades, including Binance, Bybit, KuCoin, Gate and Hyperliquid, according to CoinGlass. The volume surge alongside the price gain points to strengthening momentum that could draw additional demand for the token.
Binance and Hyperliquid hold the largest open interest at $16.30 million and $15.44 million respectively, with positive funding rates on both, suggesting leveraged longs are paying to stay in the trade. Rising open interest combined with positive funding typically confirms that new money is entering rather than existing positions being closed.
The rally follows WIF's breakout from a descending triangle, a pattern that preceded the move higher. The token now faces a structural supply zone that has rejected price four times, an area that tends to hold major sell orders. A break above it could open a move toward $0.25 to $0.26, while a rejection risks a pullback given the overbought RSI.
The Solana-based memecoin's surge comes as the broader memecoin sector draws fresh speculative interest, with WIF challenging rivals such as PEPE for position among the top meme tokens by market value. Bitcoin dominance, which has hovered near 59 percent, has left room for altcoin outperformance in recent sessions.
On the technical side, the Chaikin Money Flow (CMF), which tracks buying and selling pressure through volume, sits at 0.20 in positive territory and points upward, indicating buyers remain in control. The Relative Strength Index (RSI), however, has crossed above 70 into overbought territory, a reading that historically precedes a short-term pullback even when the broader trend stays intact.
There is no fixed timeline for such a correction; the RSI only signals that buying has become aggressive and that momentum may be difficult to sustain. Traders can keep a bullish stance while the CMF holds positive, but the repeated rejections at the supply zone mean a failed breakout could trigger profit-taking and a slide toward lower support.
For now, the path of least resistance is higher if WIF clears the supply zone on rising volume. A decisive break would confirm the triangle breakout and set up the $0.25 to $0.26 target, while a fourth rejection would leave the token vulnerable to a sharp reversal as leveraged longs unwind. Repeated tests of a supply zone often weaken it as sell orders get cleared, which raises the odds of a breakout on the next attempt.
This article is for informational purposes only and does not constitute investment advice.
