Dogwifhat (WIF) rockets 127% in a week—but here’s why traders are sweating

Meme coin mania strikes again as Solana-based dogwifhat (WIF) defies gravity with a blistering weekly rally. Retail traders pile in while institutional players eye the exits—classic crypto theater.

Behind the pump: A perfect storm of influencer hype, speculative leverage, and that peculiar human instinct to chase green candles. Meanwhile, the RSI screams ’overbought’ louder than a Bitcoin maxi at a central bank conference.

The kicker? Open interest just hit record highs alongside price. When this many degenerate gamblers crowd one side of the boat, you can almost hear the iceberg scraping metal. But hey—this time is different, right?

What’s driving dogwifhat’s uptrend?

The recent price surge highlights growing demand and interest in the memecoin, driving increased participation in its network.

Derivative market activity is rising sharply, signaling strong investor engagement. On Binance, trading volume surged to $174.3 million in the past day.

Meanwhile, dogwifhat’s open interest jumped 24%, reaching a three-month high of $355 million.

With rising volume and open interest, investor demand for the memecoin appears strong, as more market participants take positions.

Source: Santiment

Looking at dogwifhat’s Funding Rate Aggregated by Exchange, it indicates that these investors are mostly taking long positions.

As such, the funding rate across all exchanges has remained positive over the past week. Usually, a positive funding rate reflects strong demand for long positions with investors anticipating further price increase.

Source: Coinalyze

The surge in demand is evident, with buying pressure exceeding selling activity.

According to Coinalyze data, dogwifhat buyers acquired 54.53 million WIF tokens in the last 24 hours. Meanwhile, sellers offloaded 47 million, creating a positive delta of 6 million.

This indicates that buyers are outpacing sellers, a trend that often drives prices higher.

What next for WIF?

According to AMBCrypto’s analysis, WIF is experiencing strong bullish momentum. This bullishness has resulted in a high buying spree as investors enter the market to accumulate dogwifhat.

Amid this rising buying pressure, the memecoin’s RSI has surged to reach the overbought zone. At press time, dogwifhat’s RSI was at 84.21, reflecting strong buying pressure with buyers dominating the market.

However, when RSI reaches such extreme levels, markets tend to face a correction as buyers get exhausted and sellers reenter the market.

Source: Tradingview

In the previous cycle, Dogwifhat’s RSI entering the overbought zone led to price volatility.

For example, in November 2024, WIF’s RSI hit 79, triggering a same-day price surge to $4.9. However, after reaching this level, WIF retraced to $2.9, marking the start of a five-month downtrend.

If history repeats, the current spike in Dogwifhat’s RSI could signal a potential price pullback.

Source: Santiment

Despite RSI hitting high levels, market sentiment remains optimistic, with weighted sentiment at its strongest since January 2024.

A correction seems unlikely, as volume, buyers, and bullish momentum remain strong.

If these conditions persist, dogwifhat could reclaim the $1.53 resistance. However, if RSI enters overbought territory and triggers a market correction like before, WIF may drop below $1, finding support around $0.88.