Solana-based memecoin Dogwifhat (WIF) has seen a decline in open interest (OI) amid a broader price drop since July 27, with traders anticipating a near-term retest of a critical support level.
On August 3, Dogwifhat’s OI — representing the total value of all outstanding or unsettled Dogwifhat futures contracts across exchanges — fell to $252.5 million. This marks a 28% decrease from $353.4 million just seven days earlier on July 27, according to CoinGlass data.
Earlier this year, on April 1, Dogwifhat hit its yearly high in open interest, reaching $615.16 million, according to CoinGlass.
WIF was trading at $1.67 at the time of publication on August 3, down 35.48% since July 27, according to CoinMarketCap data. Several crypto traders predict that Dogwifhat will retest the $1.50 level, recently identified as a critical support level.
“WIF, in the daily timeframe, is in a correction phase and is likely to move down toward the lower support trendline between $1.50 and $1.70,” Cryptorphic wrote in an August 2 X post.
“Price is correcting towards the daily support zone,” crypto commentator Scient stated.
“The price of WIF reached my previous target and is now falling again and will likely retest the $1.5 support,” crypto trader CryptoJack added in a post to his 337,000 X followers.
Future traders are not optimistic about a quick rebound, with $11.89 million in short positions at risk if the price recovers to $1.80. Conversely, a further 10% decline to $1.50 would wipe out $7.55 million in long positions.
The price of WIF is now significantly below the $10 prediction made by Arthur Hayes, former CEO of BitMEX and current chief investment officer at Maelstrom, in March. “The hat stays on while I count to $10,” Hayes wrote in a March 14 X post, shortly before WIF hit $3 for the first time.
In June, Cointelegraph reported that Dogwifhat had dropped out of the top 50 cryptocurrencies by market capitalization. Since then, it has rebounded and is currently ranked at number 47, just above Sui (SUI).
