Dogwifhat (WIF) has experienced a significant 10.22% drop in the last 24 hours, raising concerns among analysts about potential repercussions for the meme coin. Currently priced at $3.37, this decline follows a recent dip below crucial support levels at $2.96 on May 27. Analysts, including Jack Skipp, also known as “CryptoJack,” have warned that WIF’s price needs to remain above $3.5 to avoid potentially catastrophic consequences for traders. However, some traders, like the pseudonymous “Ponzi Trader,” have noted a reversal pattern on the 4-hour price chart, suggesting a possible quick recovery.
If WIF revisits the critical $3.5 level, approximately $20 million in long positions could be wiped out, according to CoinGlass data. Despite the recent decline, futures traders have been increasing their positions on WIF, with Open Interest (OI) reaching a 2-month high of $478.39 million. Among the top 100 cryptocurrencies, WIF recorded the most significant decline in the last 24 hours, followed by BONK, Book of Meme (BOME), and Shiba Inu (SHIB).
WIF reached an all-time high of $4.64 on March 30. However, investigations have revealed that the largest wallet holder, who owns 37.62 million WIF tokens with an average purchase price of $0.32, has sold 84% of their holdings. Their current average purchase price stands at $4.31, representing a decrease of approximately 21% according to CoinStats data.
May 2024, Cryptoniteuae
