- WIF, among the finest-performing memecoins this cycle, misplaced a piece of its worth and left the top 50.
- Data from confirmed that million of quick place would face liquidation if WIF bounces.
dogwifhat [WIF], the Solana [SOL]-based token that saved different memecoins trailing, is now at a spot nobody would have imagined a couple of months again. In the final 30 days, the WIF crypto value has decreased by 45.83%.
Not solely that, the cryptocurrency has additionally dropped out of the top extremely-regarded 50 per market cap. At press time, WIF’s value was $1.53. Its market cap was $1.56 billion, with Fantom [FTM] taking its place.
Though dogwifhat launched in mid-December 2023, its rise to stardom was in Q1 2024. During that point, the value jumped by greater than 1500%.
WIF’s quantity isn’t any extra on the top
This helped the WIF crypto value hit an all-time excessive of $4.84. While there have been predictions that WIF would rally to $10, none of that has come to go because it started this steep correction.
At some level, some analysts talked about that the memecoin would flip the likes of Pepe [PEPE] and Shiba Inu [SHIB]. But that has not occurred.
For this piece, AMBCrypto examined Dogwifhat’s on-chain standing, and its potential for the longer term. The first metric we checked out was WIF’s crypto quantity.
According to knowledge from Santiment, the token’s volume was $211.62 million. This was near the bottom it has reached because the 13th of May.
When WIF skilled its quarter-lengthy upswing, the quantity obtained near $2 billion on a number of events.
Source: Santiment
Bears threat liquidation
Therefore, the worth at press time implies that curiosity in the token was nearing an all-time low. As such, it is perhaps difficult for the value to get well a few of its losses.
However, if market contributors in their numbers reap the benefits of the low cost supplied, WIF’s value may rebound. But not a number of merchants are assured in WIF’s comeback.
For instance, blockgraze, a pseudonymous dealer, posted on X (previously Twitter). According to him, he does not believe that the memecoin has offered one other shopping for alternative. He wrote that,
“Many people are talking about how WIF is in their accumulation zone, but I just checked the chart and it doesn’t seems like anyone is accumulating.”
Furthermore, merchants threat dropping million if WIF value rebounds, based on Coinglass knowledge. AMBCrypto noticed this after wanting on the liquidation map.
Liquidation happens when an change forcefully closes an open place to scale back the danger of additional losses.
This is often as a consequence of inadequate margin stability or excessive volatility when the market is treading in the wrong way of a dealer’s place.
For the liquidation map, it identifies costs the place merchants are uncovered to liquidation dangers. At press time, we noticed {that a} complete of 12.89 million quick positions might be liquidated if WIF rebounds to $1.78.
Source: Coinglass
However, if the WIF crypto value falls to $1.37, a bit beneath 2 million lengthy liquidations will happen. On the broader outlook, the notion round WIF was in a discouraging place.
Is it over for WIF?
At press time, WIF’s Weighted Sentiment, primarily based on on-chain knowledge, was -1.15. This was the lowest WIF had reached in the final six months.
Weighted Sentiment exhibits the feedback made on-line a couple of mission. Therefore, the decline implied that for each optimistic remark in regards to the memecoin, there was 1.15 extra titled towards the bearish outlook.
If this continues, WIF’s value could proceed to say no. If this occurs, the value may drop to $1.35.
At the identical time, excessive unfavorable sentiment generally act as gasoline for restoration. Should this occur in WIF’s case, the worth of the token may head in the $2 path.
Source: Santiment
Meanwhile, Open Interest (OI) in WIF has dropped beneath the $200 million mark. OI is the sum of excellent futures contracts in the market.
Realistic or not, right here’s WIF’s market cap in PEPE phrases
When it will increase, it implies that web positioning is shifting up. However, a decline, like in WIF’s scenario, implies that merchants are closing current positions.
Should this place linger, then WIF’s value may lower, and the market cap may slide beneath the 51st place.