The meme coin Dogwifhat (WIF) has experienced a dramatic fall in price over the past 24 hours, plunging 10.22% to its current level of $3.37. This comes just days after WIF dipped below crucial support levels at $2.96 on May 27th, according to CoinMarketCap data.
Analysts are divided on the future of WIF. Crypto trader Jack Skipp, known online as “CryptoJack,” believes the current price drop could be “catastrophic” for the meme coin. In a post to his 319,200 followers just before the price decline, Skipp emphasized the importance of WIF staying above $3.50. “Traders beware,” he warned.
However, other traders remain optimistic. Pseudonymous crypto personality “Ponzi Trader” identified a reversal pattern on WIF’s 4-hour chart, suggesting a potential price rebound. “I’m betting on a WIF bounce here,” Ponzi Trader stated.
The recent sell-off has significant implications for WIF holders. If the price falls back below $3.50, CoinGlass data indicates that $20 million in long positions could be liquidated. This adds to the existing nervousness, especially considering the recent activity of WIF’s largest wallet holder.
Also Read: Dogwifhat (WIF) Price Prediction: Chart Analysis Points to Potential 180% Increase or $1.22 Drop
Previously, this wallet held 37.62 million WIF tokens at an incredibly low average purchase price of $0.32, and had not sold any holdings. However, according to CoinStats data, a recent investigation revealed that the wallet holder has since sold a staggering 84% of their WIF, with their average purchase price now sitting at a much higher $4.31. This represents a loss of around 21%.
WIF’s current predicament is further highlighted by the fact that it suffered the biggest loss among the top 100 cryptocurrencies over the past 24 hours. Other meme coins like BONK (BONK) and Book of Meme (BOME) also experienced significant declines, but not as severe as WIF’s 10.22% drop. Shiba Inu (SHIB) also felt the pressure, falling by 6.83%.
It’s important to remember that the cryptocurrency market is known for its volatility. While WIF is currently facing strong headwinds, the possibility of a rebound shouldn’t be entirely discounted. Only time will tell if WIF can recover from this latest slump or if it truly is heading towards “catastrophic” levels.
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.
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