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Dogwifet falls due to several factors
Dogwifhat, a dog-themed meme coin, which recently had a big upward movement, started to fall triggered by a few factors. WIF price fell more than 12% today as the meme coin hype ended with the correction in GameStop (GME) stock price.
Among the top 100 cryptocurrencies based on market cap, meme coins such as WIF, BOME, PEPE and FLOKI led the decline in the crypto market, confirming that it is a drop led by meme coins.
WIF price drops 12%
The price of WIF is down 12% in the last 24 hours, with the price currently trading at $2.58 at the time of writing. The 24-hour low and high are $2.53 and $2.89, respectively.
Whales and traders are selling dogwifhat to book profits asap GameStop and AMC movie theater prices have fallen following recent bullish FOMO. The price of GameStop fell after a spectacular rally last week, falling more than 20% today after hitting a 52-week high of $64.83.
One whale sold 732,481 WIF worth $1.85 million. This whale purchased the WIF holdings for $2.18 million, but decided to sell the entire WIF holdings at a loss. Other whales reflected the same sentiment by divesting their WIF holdings.
Meanwhile, traders are also selling their positions in WIF as it is still unable to reach short zones and chart patterns signal massive selling in dogwifhat.
Crypto analysts have pointed to $2.5 as the crucial support level to watch. If WIF loses this support level, the next drop will be around $1.6.
Read too: Popular Analyst Reveals Trading Alert for Bitcoin ETF, BTC Price Reaches $80K?
Is the Meme Coin Craze Over?
The meme coin hype seen recently was triggered by the GameStop rally. As the price of GME fell, so did meme coins, including BOME, PEPEand FLOKI prices.
Notably, derivatives traders have not started selling WIF. WIF futures open interest has increased by almost 5% in the last 24 hours. High confidence in derivatives traders could boost market action next week. Traders are likely to drop WIF next week if crucial support is broken.
Read too: Michael Saylor shares bullish tip on Bitcoin (BTC) as price surpasses $67K