Dogwifhat (WIF) has plummeted 10.22% in the past 24 hours, falling to levels that analysts believe could be “catastrophic” for the meme coin, but traders are hoping for a quick price rebound.
Currently trading at $3.37, this comes three days after WIF briefly fell below the critical support level of $2.96 on May 27, according to CoinMarketCap data.
According to cryptocurrency trader Jack Skipp (aka “CryptoJack”), the price is currently trading 3.7% below the relevant price benchmark.
“The WIF price must remain above $3.50 or it could be disastrous. Traders beware.” He posted to his 319,200 followers on May 30, hours before the price drop.
However, an anonymous cryptocurrency trader called ‘Ponzi Trader’ pointed out that a reversal pattern was forming on the 4-hour price chart, suggesting that the price could recover quickly.
“I’m betting on a WIF rebound here,” he added.
Revisiting that level would wipe out $20 million from long positions, according to CoinGlass data.
This comes as futures traders are increasing their positions in WIF, with open interest (OI) hitting a two-month high of $478.39 million, levels not seen since April 9.
Among the top 100 cryptocurrencies, WIF has suffered the most over the past 24 hours, with BONK (BONK) down 7.47%, Book of Meme (BOME) seeing a 7.04% price drop, and Shiba Inu (SHIB) also seeing a 7.04% price drop. It fell 6.83%.
Related: Memecoin ranks 4th out of the top 10 in the cryptocurrency open interest chart.
On March 30, WIF hit an all-time high of $4.64. The largest wallet holder with 37.62 million WIF tokens at an average purchase price of $0.32 did not sell any tokens.
However, recent research shows that wallet owners have sold 84% of their holdings, with the average purchase price now down about 21% to $4.31, according to CoinStats data.
magazine: Cryptocurrencies have revealed a sudden rift between Democrats just months before the election.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.