Dogwifhat’s market cap has declined by 31.97% as it faces significant sell pressure after its recent V-shaped recovery following the market crash on 5 August. As of press time, WIF’s market cap stands at $1.34B.
The decline in WIF’s price follows the same trend seen in other major meme coins, including Shiba Inu (SHIB), Pepe (PEPE), and Dogecoin (DOGE). Over the past month, DOGE’s price has dropped by 16% whereas PEPE and SHIB have declined by 36% and 25%, respectively.
Compared to other major meme coins, Dogwifhat has marked a steeper decline, having dropped by over 53% since 22 July.
Liquidated WIF long positions outnumber shorts
According to CoinGlass Data, WIF long liquidations have outnumbered the shorts, with over $6.9 million longs being liquidated cumulatively in the past 10 days as compared to $3.12 million liquidated short positions.
This discrepancy may represent traders’ positive expectations for Dogwifhat’s price action as they expected it to continue its rise after the peak on 9th August. However, the forced sales due to liquidations amplified the downward pressure and resulted in a major decline.
At press time, Dogwifhat has the potential to drop further towards the downside as a classic head-and-shoulders (H&S) pattern has formed on the daily chart. It consists of three peaks, where the middle peak is higher than the peaks on the left and the right. There is also a common line joining the three triangles, called the neckline.
WIF broke the support line on 5th August but quickly rebounded. As of press time, Dogwifhat is attempting to retest this support line. If Dogwifhat breaks and rebounds from this support line, surpassing the accumulation phase, the H&S pattern will be rejected.
In this case, WIF’s price will be considered bottomed out and it will retrace towards the previous high. Based on that, the next immediate targets will be the 50-day exponential moving average (blue line) and the 200-day exponential moving average (orange line).
