Dogwifhat open interest declines 28% amid fears of a $1.50 'likely retest'

Solana-based memecoin Dogwifhat open interest (OI) has declined amid a broader price decline since July 27 with traders expecting a near-term retest of a critical support level.

On August 3, Dogwifhat (WIF) OI — which measures the total value of all outstanding or unsettled Dogwifhat futures contracts across exchanges — has fallen to $252.5 million, approximately 28% down from seven days prior on July 27, at $353.4 million, according to CoinGlass data.

WIF is currently trading at $1.67, down 35.48% since July 27, according to CoinMarketCap data. Several crypto traders expect Dogwifhat to retest the $1.50 level, which has recently been identified as a critical support level in recent times.

“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 not hopeful of quick rebound

Future traders are skeptical of a quick rebound, with $11.89 million in short positions at risk if the price recovers to $1.80. Meanwhile, a further 10% decline down to $1.50 would wipe out $7.55 million in long positions.

The price is now significantly farther from the $10 prediction made by Arthur Hayes, the 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.

Cointelegraph reported in June that Dogwifhat had dropped out of the top 50 cryptocurrencies by market capitalization. Since then, it has made a comeback, currently ranked at number 47, just above Sui (SUI).