Dogwifhat’s Monthly Stats Show Bearish Trend: Open Interest Halved
Despite the recent surge in the WIF price, its monthly stats have seen large declines. On Tuesday, Aug. 20, the price of Dogwifhat (WIF) soared 17% to $1.61, while the meme coin’s market cap surpassed the $1.6 billion mark. Following the price surge, WIF’s daily trading volume increased by 52%, reaching $370 million.
Decline in Open Interest
According to data provided by Santiment, the WIF total open interest plunged by 54.5% over the past 30 days — falling from $328 million to $149 million. This significant decrease in open interest indicates a decline in trader interest in the meme coin, especially as the broader crypto market experienced a local bottom during the same period.
The decline in open interest may be attributed to various factors, including market sentiment, regulatory changes, and overall market conditions. Traders may have shifted their focus to other assets or investment opportunities, leading to a decrease in open interest in WIF.
Impact of Funding Rate and Sentiment
Data from the market intelligence platform also shows that the total funding rates aggregated by WIF are hovering at 0.006%, indicating traders’ bullishness on WIF’s price hike. This positive funding rate suggests that traders are optimistic about the potential for WIF’s price to increase in the near future.
On the other hand, the meme coin’s social volume looks mostly negative as the weighed sentiment around WIF is sitting below the zero mark. This negative sentiment may be influencing traders’ decisions and contributing to the decline in open interest observed in recent months.
Market Performance and Recovery
While the recent price surge made WIF the top gainer among the top 100 cryptocurrencies by market capitalization, the asset is still down by 37% over the past 30 days. WIF briefly plunged to $1.12 on Aug. 5 but soon recovered 20% of its losses, indicating volatility in the meme coin’s price movements.
Notably, WIF is not the only meme coin to register impressive gains with the market-wide recovery. According to data from CoinGecko, meme coins’ market cap increased by 6.9% in total, reaching $41 billion. This overall increase in market cap suggests growing interest in meme coins among investors, despite the challenges faced by individual assets like WIF.
In conclusion, while the recent surge in WIF’s price may have attracted attention, the decline in open interest and negative sentiment surrounding the meme coin indicate a bearish trend. Traders and investors should carefully consider these factors when making decisions about their WIF holdings in the current market environment.
