Dogwifhat and BONK Defy Crypto Market Decline

• WIF and BONK are up about 6% in the last 24 hours.
• The market value of meme coins fell by almost 6% following sustained declines in DOGE, SHIB and PEPE.
• WIF could rise to $2.939 if it breaks the resistance near $2.643.

Memecoins Solana dogwifhat (WIF) and BONK are among the early winners in the top 100 cryptocurrencies category on Monday after defying the market decline of the past 24 hours.

WIF could continue an impressive run despite the broader crypto market downturn

The meme coin category has lost 5.8% of its market capitalization in the last 24 hours, following declines of 7%, 9% and 4% in the top meme coins Dogecoin (DOGE), Shiba Inu (SHIB) and PEPE respectively .

While the meme category often suffers a setback when the top three post losses, WIF and BONK have defied the market pullback, rising about 6% over the past 24 hours.

In particular, the WIF has been on an upward trend since the Federal Reserve (Fed) cut rates by 50 basis points last Wednesday. WIF surged more than 65% during the period, outperforming almost every other token in the top eight meme coin category, according to Coingekco data.

Top eight coin memes

The WIF could rise to $2.939 if it breaks above the key resistance

The surge has seen WIF break out of a downtrend visualized by a key trend line extending from May 29 and has reversed the 50-day, 100-day and 200-day simple moving averages (SMA). As a result, the biggest meme coin Solana is seeing increased bullish momentum.

On the 4-hour chart, WIF is trading in key rectangular channels and is looking to approach resistance around $2.643. A successful move above this level could send WIF to another key resistance level at $2,939. If the uptrend continues, the WIF could break above this level and rise towards the resistance at $3.472.

WIF/USDT 4 Hour Chart

On the downside, SMAs could provide support to prevent any sharp decline.

The relative strength index (RSI) and momentum indicators of the stochastic oscillator are above their neutral levels and approaching the oversold region, indicating prevailing upward pressure.

Open interest (OI) on rising WIF futures supports the price increase.

Open interest is the total number of outstanding unsettled positions in a derivatives market. Increasing open interest during rising prices indicates traders expect the trend to continue.

WIF’s OI on Monday approached a four-month high of $439.43 million, the highest level since June 7.

WIF Futures Open Interest

A close of the candlestick below $2.038 will invalidate the bullish thesis.