Dogwifhat, a prominent meme coin, has experienced a sharp decline in March after a significant rise that attracted considerable attention. Various factors have contributed to this downturn, leading to discussions about the potential end of the meme coin trend. Following the surge in GameStop (GME), a correction phase began, significantly impacting Dogwifhat’s market value. Today, WIF’s price has plummeted by over 8%, leading the decline among its competitors in the top 100 cryptocurrencies by market value, such as BOME, PEPE, and FLOKI.
WIF Price Analysis
The price of WIF has dropped by more than 8% in the past 24 hours, currently standing at $2.57. The lowest price recorded was $2.53, while the highest was $2.89. The selling pressure comes from whales and traders aiming to secure early profits following the recent surge in GameStop and AMC Theatres prices. GameStop’s value decreased by over 20% after reaching its peak in 52 weeks at $64.83.
Why Are Whales Selling Dogwifhat?
A notable sale occurred when a whale sold 732,481 WIF for $1.85 million, originally bought for $2.18 million, resulting in a loss. This action has raised concerns that other whales might follow suit to liquidate their positions. Additionally, whales are attempting to offload their holdings before reaching short liquidation zones, as chart patterns suggest potential large sales of Dogwifhat.
Key Levels to Watch
Crypto analysts emphasize that $2.5 is a crucial support level for WIF. If this level is breached, the next significant drop could bring the price down to $1.6.
Is the Meme Coin Craze Over?
The rally in GameStop initially revived interest in meme coins. However, with the decline in GME’s price, meme coins like BOME, PEPE, and FLOKI have also seen substantial drops. Despite this, WIF derivative investors have not started selling off their positions. The open interest in WIF futures has increased by about 5% in the last 24 hours, indicating a high level of confidence among derivative investors.
If the key support level is broken, there could be significant downward pressure on WIF in the coming week, potentially leading to lower price levels.
Useful Inferences
Given the current scenario, investors can draw several valuable insights:
- Monitor the $2.5 support level for WIF; a breach could signal further declines.
- Consider the actions of large whales as indicators of market sentiment.
- Evaluate the potential impact of derivative market activity on WIF prices.
- Understand that fluctuations in related stocks like GameStop can influence meme coin prices.
