Dogwifhat (WIF) investors are licking their wounds after the memecoin tumbled out of the top 50 cryptocurrencies by market cap, following a brutal 38% price drop in the past week. While it maintains its position as the fourth-largest memecoin, WIF’s overall ranking has suffered a significant blow.
From Top 50 to Reality Check
At the time of writing, WIF has sunk a further 10%, extending its weekly losses to a staggering 36%. This price decline has pushed the memecoin down to the 59th position by market cap, with a current valuation of $1.55 billion. Notably, Fantom (FTM) capitalized on Dogwifhat’s woes, surging past it in the top 50 rankings after WIF’s market cap plummeted 9% within just 12 hours.
It’s a far cry from just three months ago, when WIF reached its all-time high of $4.83. Currently, the memecoin has shed a staggering 65% of its value, leaving investors questioning its future trajectory.
Accumulation or Capitulation? Experts Divided
While some speculate that WIF is entering an accumulation phase – a period where investors buy in anticipation of a price rise – market experts remain unconvinced. Pseudonymous crypto trader Blockgraze recently commented, “Looking at the charts, there isn’t any evidence of accumulation happening.” This suggests that investors might be cashing out, potentially leading to further losses.
Opinions are mixed on WIF’s future potential. Arthur Hayes, former CEO of BitMEX, previously speculated that the coin could reach a staggering $10. While some believe this target remains achievable in the long term, the short-term outlook appears uncertain.
Volatility Reigns Supreme
Franklin Templeton recently highlighted the potential for quick gains with memecoins, despite their inherent lack of value and lower fees compared to other cryptocurrencies. However, they also warn of the high volatility associated with these assets, a sentiment echoed by Coinbase, which recently began offering WIF perpetual futures trading for non-US users.
Also Read: Whales Dump $23.4 Million Dogwifhat (WIF): (WIF) Price Plummets as Experts Predict Downturn
Futures Traders Remain Cautious
The current price drop seems to have spooked futures traders, with Open Interest (OI) – the total value of outstanding futures contracts – dropping 25% to $209.64 million in the past week. This indicates a reluctance to bet on WIF’s short-term movement.
A Look to the Future: Exchange Listings as a Lifeline?
One potential catalyst for WIF could be upcoming exchange listings. Rumors swirl about Robinhood and Bitstamp potentially adding the memecoin to their platforms. Increased exposure to new markets, particularly in the US and Europe, could potentially revitalize WIF’s price.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
