Dogwifhat 10% drop could be ‘catastrophic,' but traders bet on bounce

The WIF meme coin is trading below what some believe is a concerning price level, but many traders are seemingly “betting on a WIF bounce.”

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.