The memecoin sector has rebounded significantly, with dogwifhat [WIF] leading the rally. Derivatives data shows increased leverage and buying activity among traders, pushing WIF toward a key resistance level.
The memecoin sector rebounded by more than 4% as volume jumped by 51% in line with the broader crypto market. Top-cap memecoins spearheaded the rally, with dogwifhat [WIF] surging by 12%, making it one of the top ten gainers in the past 24 hours. Other memecoins that recorded similar or more gains were Pepe [PEPE], Fartcoin [FARTCOIN], and SPX6900 [SPX].
The daily percentage surge was equal to the weekly gains. The numbers were improving as the narrative to classify memecoins as “digital collectibles” rather than securities by the SEC and CFTC gained pace. The derivatives data showed that the Long/Short Ratio was buyer-dominated, with those on Binance leading at 1.3359, followed by OKX at 1.14.
For Top Traders, the ratio for Accounts was 1.6151, while the ratio for Positions was 1.4804, indicating that smart money, along with retail traders, was buying the meme coin. Additionally, the Open Interest (OI) jumped to $105 million, more than the volume, which was at $75 million. The OI-Weighted Funding Rate was green over the past two days with a reading of 0.0051%.
On the charts, WIF was rising as it respected an ascending trendline that had held the price since the 11th of March. This was after a lower high that was at $0.223, the price target if WIF surpasses the $0.20 zone. Right now, WIF bulls are battling to break past $0.20, with some seemingly taking profits as the Cumulative Volume Delta (CVD) has shifted to red.
The net token change dropped from a high of 5.63 million WIF tokens bought to now about 1.17 million tokens being sold. The Money Flow Index (MFI) was still indicating capital was flowing into the memecoin, though momentum had cooled off. Only staying above the $0.20 zone could put WIF on a path toward $0.223.
