Dogwifhat [WIF] surges 18.56% as buyers accumulate 72 million tokens

Dogwifhat [WIF] experienced a significant surge, rallying 18.56% to reach a three-week high of $0.9558 before slightly retracing to $0.94. This price movement was accompanied by a substantial accumulation of tokens, with buyers acquiring over 72 million tokens within the past 48 hours. The memecoin's market capitalization also saw a notable increase, hiking by 159% to $603.7 million, indicating strong on-chain activity.

Prior to this recent price rebound, sellers had dominated the market, with selling volume consistently outpacing buyers. However, over the past day, the market dynamics shifted dramatically in favor of buyers. At the time of writing, Coinalyze reported that dogwifhat saw 9.44 million in buy volume compared to 8.88 million in sell volume, signaling a strong shift in market sentiment. This pattern was also evident the previous day, with the memecoin recording 63 million in buy volume relative to 61 million in sell volume, resulting in two consecutive days of a positive delta of 2.3 million and 563k, respectively. Such a strong hike in buying pressure typically reflects growing demand with fresh capital flowing into the market.

In the derivatives market, buyers strategically positioned themselves, awaiting the next move. According to Coinglass data, dogwifhat’s Open Interest (OI) surged 25.51% to $441.49 million, while derivatives volume hiked 88.9% to $2.3 billion. Historically, a rising OI alongside rising prices reflects strong capital inflow as investors pursue the trend shift. This positioning amidst an uptrend signals bullish conviction, further validated by a positive Funding Rate, indicating that investors are mostly going long.

As prices surged, so did the appetite to realize profit among holders and speculative investors. Dogwifhat's surge to a three-week high created a profit-taking window for holders who had been underwater. Looking at the memecoin’s Netflow, investors are aggressively cashing out. As such, this metric has surged, recording a positive value for two consecutive days. As of this writing, Netflow was $2.52 million, reflecting massive selling activity across all market participants despite the price upswing.

According to AMBCrypto’s analysis, dogwifhat surged as buyers returned to the market amid a wider crypto market recovery. At the time of writing, the memecoin’s Stochastic RSI surged to 86 after making a bullish crossover, signaling a strong upward momentum and its continuation potential. In the same line, the Relative Strength Index (RSI) climbed to 55, entering bullish territory and signaling growing buyer strength. With investors actively accumulating and momentum building, dogwifhat (WIF) appears poised for further gains. If buying pressure continues, WIF could complete a breakout, flip the $1.00 resistance into support, and target $1.20. However, the uptrend faces a risk: profit-taking. If sellers begin offloading in significant numbers, bullish momentum could weaken, leading to a potential pullback toward the $0.84 support level.