Dogwifhat is faltering due to several factors

Dogwifhat, a dog-themed meme coin that has seen a massive uptrend recently, is set to fall due to several factors. WIF price fell over 12% today as the meme coin hype ended with the GameStop (GME) stock price correction.

Among the top 100 cryptocurrencies based on market cap, meme coins such as WIF, BOME, PEPE, and FLOKI led the crypto market decline, confirming that it was a meme coin-induced decline.

WIF price plunges 12%

WIF price has fallen by 12% in the last 24 hours, with the price currently sitting 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 early profits as prices of GameStop and AMC Theaters collapsed for upside after recent FOMO. GameStop price 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 bought the WIF holdings for $2.18 million but decided to sell the entire WIF holdings at a loss. Other whales have expressed the same sentiment and dumped their holdings in the WIF.

Meanwhile, traders are also selling their positions in WIF as it is not even reaching short zones and the chart patterns suggest that massive selling is imminent on Dogwifhat.

Crypto analysts have pointed out that $2.5 is the crucial support level to watch. If WIF loses this support level, the next decline will be around $1.6.

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Is the meme coin mania over?

The recent hype around meme coins was sparked by the GameStop rally. As GME price fell, so did meme coins, including BOME, PEPE, and FLOKI prices.

What is noteworthy is that derivatives traders have not yet started selling WIF. Open interest in WIF exchange futures has increased by almost 5% in the last 24 hours. High confidence in derivatives traders could dictate market action next week. Traders are likely to crash WIF next week if crucial support is broken.

Also Read: Michael Saylor gives bullish Bitcoin (BTC) tip as price crosses $67,000