Dogwifhat (WIF) has plummeted 10.22% over the past 24 hours to a level one analyst believes could be “catastrophic” for the meme coin, though traders are hopeful of a quick price rebound.
Currently trading at $3.37, it comes only three days after WIF briefly dipped below crucial support levels at $2.96 on May 27, per CoinMarketCap data.
It is now trading 3.7% below a concerning price benchmark, according to crypto trader Jack Skipp aka “CryptoJack.”
“The price of WIF needs to stay above $3.5 or this could be catastrophic. Traders beware,” he wrote in a May 30 X post to his 319,200 followers just hours before the price decline.
However, the pseudonymous crypto trader “Ponzi Trader” pointed to a reversal pattern forming on the 4-hour price chart, signaling that the price may be due for a quick recovery.
“I’m betting on a WIF bounce here,” he added.
If it revisits that level, CoinGlass data shows that $20 million in long positions will be wiped out.
It comes as futures traders ramp up their positions on WIF, with Open Interest (OI) at a 2-month high of $478.39 million, a level not seen since April 9.
Among the top 100 cryptocurrencies, WIF took the biggest hit over the past 24 hours, with BONK (BONK) down 7.47%, Book of Meme (BOME) taking a 7.04% price decline, and Shiba Inu (SHIB) also down 6.83%.
Related: Memecoins dominate crypto open interest charts taking 4 out of top 10 spots
On March 30, WIF reached a new all-time high of $4.64. The largest wallet holder, holding 37.62 million WIF tokens at an average purchase price of $0.32, had not sold any tokens.
However, upon a recent investigation, it was found that the wallet holder has since sold 84% of their holdings, with their average purchase price now at $4.31, down around 21%, according to CoinStats data.
Magazine: Crypto exposes sudden rift among Democrats months ahead of election
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.