- WIF, one of the best performing memecoins of this cycle, lost a chunk of its value and left the top 50.
- Data from showed millions of short positions would face liquidation if the WIF rebounded.
dogwifhat [WIF]Solana [SOL]A token based on other memecoins falling behind is now in a place that no one would have imagined a few months ago. In the last 30 days, the price of WIF cryptocurrency has decreased by 45.83%.
Not only that, the cryptocurrency also dropped out of the top 50 highly valued by market capitalization. At press time, WIF was priced at $1.53. Its market cap was $1.56 billion with Fantom [FTM] takes his place.
Although dogwifhat was launched in mid-December 2023, its rise to fame was in Q1 2024. During this time, the price jumped by more than 1500%.
WIF volume is no longer up
This helped the WIF cryptocurrency price reach an all-time high of $4.84. While there were predictions that WIF would rise to $10, none of that has materialized since it began this steep correction.
At some point, some analysts mentioned that memecoin will topple the likes of Pepe [PEPE] and Shiba Inu [SHIB]. But it did not happen.
For this piece, AMBCrypto explored Dogwifhat’s on-chain status and its potential going forward. The first metric we looked at was WIF cryptocurrency volume.
According to data from Santiment, the token volume was $211.62 million. That was close to the lowest it had hit since May 13.
When WIF experienced a quarterly upswing, the volume approached $2 billion several times.
Source: Santiment
The bears are threatened with liquidation
Thus, the value at press time suggests that interest in the token was close to an all-time low. As such, it may be challenging for the price to recoup some of its losses.
However, if market participants in their numbers take advantage of the discounts offered, the WIF price may revert back. But few traders believe in the return of WIF.
For example, blockgraze, a pseudonymous trader, posted on X (formerly Twitter). According to him, he does not believe that memecoin has provided another buying opportunity. He wrote that
“A lot of people are talking about how WIF is in their accumulation zone, but I just checked the chart and it doesn’t look like anyone is accumulating.
Additionally, traders risk losing millions if the WIF price rebounds, according to data from Coinglass. AMBCrypto observed this after viewing the liquidation map.
Liquidation occurs when an exchange forcibly closes an open position to reduce the risk of further losses.
This is usually due to insufficient margin balance or high volatility when the market moves in the opposite direction of the trader’s position.
For the liquidation map, it identifies prices where traders are exposed to liquidation risks. At press time, we noted that a total of 12.89 million short positions could be liquidated if WIF rebounds to $1.78.
Source: Coinglass
However, if the price of WIF crypto falls to $1.37, there will be just under 2 million long liquidations. In a broader perspective, the perception of WIF was in a discouraging position.
Is it over for WIF?
At press time, WIF’s weighted sentiment based on chain data was -1.15. This was the lowest WIF in six months.
Dear Sentiment displays online comments about the project. So the decline meant that for every positive comment about memecoin, there were 1.15 more bearish headlines.
If this continues, the price of WIF may continue to fall. If that happens, the price could drop to $1.35.
At the same time, extremely negative sentiment sometimes acts as fuel for recovery. If this were to happen in the case of WIF, the value of the token could go towards $2.
Source: Santiment
Meanwhile, Open Interest (OI) in WIF fell below the $200 million mark. OI is the sum of outstanding futures contracts in the market.
Realistic or not, here is WIF’s market cap in PEPE terms
When it increases, it means that the grid position is moving up. However, a decline, as in the WIF situation, means that traders are closing existing positions.
If this position were to persist, the price of WIF could decrease and the market cap could fall below the 51 position.