Dogwifhat Sheds Almost $1B In Market Cap: 'WIF Might Be Done Here,' Cautions Trader, But Not Everyone Agrees

Heavily-followed crypto trader Bluntz Capital foresees a potential downturn for Dogwifhat WIF/USD, suggesting a possible rebuying opportunity at lower prices.

What Happened: In a Thursday post on X (formerly Twitter), the trader expressed the view that the macro 5-wave pattern from inception on Dogwifhat might be completed. He foresees a "long, drawn-out abc correction before the next parabolic leg up."

Bluntz Capital further indicated a potential strategy of refilling holdings when the price drops to between $1-$2, a range between the 0.618 and 0.78 Fibonacci retracement levels.

i think the macro 5 up from inception on $WIF might be done here, all waves accounted for and a long drawn out abc probs underway before the next parabolic leg.

looking to probs rebuy my bags down around $1-$2 in between the 618 and 0.78 pic.twitter.com/rnszGOXbSF

— Bluntz (@Bluntz_Capital) April 4, 2024

While the trader's opinion attracted a mixed bag of reactions, heavily-followed crypto trader KSICRYPTO tweeted, "If it breaks $3.21 (last line of defence), then it's going deep into the ocean."

Another heavily-followed pseudonymous Dogwifhat trader compared the trajectory of Dogwifhat to Shiba Inu, stating "Thing is Shib ran much faster so I think that's why it dumped so fast and so much." He believes that a “legendary entry” below $2 is possible.  

Contradicting Bluntz’ view, Crypto BULL God tweeted, "Anything is possible, as it is with any chart, however, I am seeing the polar opposite of this view at the moment."

Also Read: ‘Shiba Inu Killer’ Dogwifhat Up 20% On The Week, Trader Predicts It ‘Blows Past $5’

Why It Matters: Since its preliminary all-time high of $4.80 on March 31, WIF has lost almost $1 billion in market capitalization, trading around $3.85 at the time of writing, 2% down on the day. This equates to a drawdown of over 20%.

If Bluntz Capital’s analysis holds true, it could present a strategic buying opportunity for investors to maximize their returns by buying at lower prices.

However, as with all market predictions, this should be taken as one of many indicators and not as a definitive guide to future market movements.

CRG, another crypto trader, previously had a bullish outlook on Dogwifhat amid a bullish market but has now changed his stance.

In his latest tweet, the trader states that the WIF bounce is a bit weak: "BTC bouncing, WIF should be flying out the gate, not stalling. Not too sure on it short term now."

What’s Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Dog-Themed Meme Coins Dogwifhat, Floki, Bonk Dominate Top Gainers, Why Are They Surging Today

Image created using artificial intelligence with Midjourney.