Dogwifhat’s WIF Soars for 72 Hours—But Here’s the Catch

Meme coin mania strikes again as WIF rides a three-day green candle parade. Retail traders pile in, Twitter buzzes—yet seasoned degens spot trouble in paradise.

The hidden risk? Liquidity. Thin order books mean this rocket could reverse faster than a crypto VC’s promises. When the music stops, the last buyers might be left holding a very expensive hat.

Fun fact: This rally costs more in gas fees than the actual wool on a dog’s head. Stay sharp out there.

Can dogwifhat sustain recent gains?

According to AMBCrypto’s analysis, dogwifhat experienced strong upward momentum at press time as buyers dominated the market. Notably, the memecoin’s RSI surged to 70 from 41 within four days.

The uptick in RSI to such extreme levels reflects massive buying pressure with buyers in total control of the market.

Having said that, while 70 signals overbought territory, RSI often climbs to 80 before markets turn overheated enough for a correction.

Source: TradingView

Amidst this buying activity, the upward momentum has strengthened with the Directional Movement Index (DMI) surging to hit a 6-month high of 37.

With +Di rising while -DI remains low, it signals a strong upward momentum, confirming potential for the current trend to continue.

Source: CoinGlass

Accumulation surges across exchanges

Looking further, on short timeframes, specifically on hourly charts, dogwifhat experienced massive accumulation. In fact, the Netflow Heatmap remained negative across all major exchanges under the said timeframe.

For instance, on Binance, Netflow has dropped to -451.9k, signaling rising buying pressure with more outflows than inflows.

Source: Santiment

These buyers entering the market are mostly taking strategic positions, with most of them going long.

In fact, dogwifhat is seeing a positive Funding Rate Aggregated by Exchanges. This metric has turned positive again after dropping to negative territory the previous day.

A positive Funding Rate points towards a higher demand for long positions, suggesting that investors are bullish and expect more gains.

Simply put, dogwifhat’s momentum remained firmly in the bulls’ favor.

If buyers continue to dominate, WIF could climb toward $0.79. However, if demand fades as quickly as it appeared, a pullback toward $0.54 remains on the cards.