dogwifhat (WIF) defies the market to experience sustained gains, up by 9.23% in the last week

dogwifhat [WIF], the fourth largest memecoin by market cap has defied markets to experience sustained gains. While the rest of the market was bleeding, WIF was holding well, thus building optimism.

dogwifhat (WIF), touted as the fourth-largest memecoin by market capitalization, has managed to buck the broader market trend and clock sustained gains. At a time when the rest of the market was bleeding, WIF held its ground, building anticipation among investors.

At the time of writing, dogwifhat was trading at $1.53, notching up a 9.23% gain over the last seven days.

Prior to this, WIF had been on a downward trajectory, clocking a 15.35% drop over the last 30 days.

Now, as a response to this shift in market sentiment, WIF saw rising demand and buying activity, evidenced by a surge in trading volume. Over the last 24 hours, WIF’s trading volume went up by 23.65% to hit the $221 million mark.

Prevailing market sentiment

AMBcrypto’s analysis revealed that dogwifhat was indeed enjoying positive market sentiment.

This was further supported by data from Market Prophit, which indicated a high favorability towards the memecoin. As per Market Prophit, crowd sentiment was 0.15, while the Buzz score was 0.8447 and the crowd Z-score sentiment was 1.52.

A positive crowd sentiment indicates that investors and other market participants were largely optimistic about WIF’s future prospects.

Source: Market Prophit

What do WIF’s charts have to say?

AMBcrypto’s analysis of the price chart revealed that WIF was experiencing strong upward momentum.

Source: Tradingview

Firstly, the 50 SMA at $1.51 was trading below the current price, suggesting that the recent price action was stronger than the historical average. When the SMA is positioned like this, it indicates that the memecoin was in an uptrend phase.

Source: Santiment

Additionally, dogwifhat’s funding rate, aggregated by exchange, was positive. This implied that traders longing the exchange were paying those on the short side.

Such a scenario unfolds when there is a higher demand for longs over shorts, leading traders to pay a premium for entering long positions. This usually occurs when investors are expecting the price to rise.

Source: Coinglass

Finally, the demand for WIF longs was further supported by a positive OI-weighted funding rate. This indicated that there was a higher demand for long positions, which reflected the overall bullish market sentiment.

Realistic or not, here’s WIF’s market cap in BTC’s terms

Thus, if the prevailing market conditions continue to hold, WIF was well-positioned to clock further gains. A breakout from the descending trendline could propel the memecoin to hit the $2.0 resistance level, which had proven to be a sticky zone.

However, a correction could see WIF drop down to a critical support level of $1.2.

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