Traders Bet on Bounce Despite Potential Catastrophic 10% Drop In Dogwifhat

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

Source:www.tronweekly.com

Dogwifhat (WIF) has experienced a significant drop of 10.22% in the last 24 hours, reaching a level that one analyst believes could have catastrophic implications for the meme coin. Despite this, traders are optimistic about a swift price recovery.

Currently priced at $3.37, this decline comes just three days after WIF briefly fell below critical support levels at $2.96 on May 27th, according to data from CoinMarketCap. As of now, it is trading 3.7% below a worrisome price threshold, as noted by crypto traders. The price of WIF needs to remain above $3.5, or this could have catastrophic consequences. Traders, be cautious, he warned in a post on May 30th to his 319,200 followers, just hours before the price drop occurred. However, the pseudonymous crypto trader Ponzi Trader pointed out a reversal pattern emerging on the 4-hour price chart, suggesting that the price might be poised for a rapid recovery.

“I'm betting on a WIF bounce here”, he added. If it revisits that level, 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 meme cryptocurrencies, WIF experienced the most significant drop over the past 24 hours, with BONK (BONK) down 7.47%, Book of Meme (BOME) experiencing a 7.04% price decline, and Shiba Inu (SHIB) also down 6.83%. On March 31, 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.

WIF All-time-high Price in 1Y Chart, Source: CoinMarketCap

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 $3.4. The WIF 7-day rise is around 23.31% according to data.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.