Dogwifhat (WIF) has experienced a significant drop of 10.22% in the past 24 hours, which could have a “catastrophic” impact on the meme coin, according to an analyst. However, traders remain hopeful for a quick recovery in its price.
Currently priced at $3.37, this decline comes just three days after WIF briefly fell below the crucial support levels at $2.96 on May 27, as reported by CoinMarketCap data.
The current trading price is 3.7% lower than a concerning benchmark, as noted by crypto trader Jack Skipp, also known as “CryptoJack.” In a post on May 30, he warned his 319,200 followers that if the price of WIF falls below $3.5, it could have catastrophic consequences. He urged traders to be cautious just hours before the decline.
However, another pseudonymous crypto trader, “Ponzi Trader,” identified a reversal pattern on the 4-hour price chart, suggesting that the price might quickly recover. He expressed optimism, stating, “I’m betting on a WIF bounce here.”
Despite the recent decline, WIF has still seen a positive growth of 27% over the past 30 days, according to CoinMarketCap data. If the price revisits the previous level, CoinGlass data indicates that $20 million worth of long positions will be eliminated.
This decline in price coincides with an increase in futures traders’ positions on WIF, with Open Interest (OI) reaching a 2-month high of $478.39 million, a level not seen since April 9.
Out of the top 100 cryptocurrencies, WIF experienced the largest drop in price over the past 24 hours, with BONK (BONK) down 7.47%, Book of Meme (BOME) experiencing a 7.04% decline, and Shiba Inu (SHIB) also dropping by 6.83%.
On March 30, WIF reached its all-time high of $4.64. The largest wallet holder, who initially purchased 37.62 million WIF tokens at an average price of $0.32, has since sold 84% of their holdings. Their average purchase price has now decreased to $4.31, representing a decline of approximately 21%, according to CoinStats data.
It is important to note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research before making any investment or trading decisions.