Dogwifhat (WIF), a popular meme coin, has experienced a significant drop, plunging 10.22% over the past 24 hours to a current trading price of $3.37. This decline has raised concerns among analysts and traders, with some warning that the situation could become "catastrophic" if the coin doesn't recover quickly. Despite this, many traders are optimistic about a potential price rebound.

Three days ago, on May 27, WIF briefly dipped below a critical support level of $2.96, according to data from CoinMarketCap. Now, it is trading 3.7% below a key price benchmark, sparking further worry. Crypto trader Jack Skipp, known as “CryptoJack,” emphasized the importance of maintaining a price above $3.5 to avoid severe consequences. In a May 30 post to his 319,200 followers on social media platform X, he wrote, “The price of WIF needs to stay above $3.5 or this could be catastrophic. Traders beware.”

However, another trader, who goes by the pseudonym “Ponzi Trader,” highlighted a potential reversal pattern forming on the 4-hour price chart, suggesting a quick recovery might be on the horizon. “I’m betting on a WIF bounce here,” he added, signaling optimism among some market participants.

If WIF revisits the crucial support level, it could lead to significant losses for long positions. Data from CoinGlass indicates that $20 million in long positions could be wiped out if the price falls further.

Despite the current price dip, futures traders are increasing their positions on WIF. Open Interest (OI) has reached a two-month high of $478.39 million, a level not seen since April 9. This surge in OI suggests that traders are actively engaging with WIF, betting on its potential rebound.

Among the top 100 cryptocurrencies, WIF has suffered the most significant decline over the past 24 hours. Other notable declines include BONK (BONK), which dropped 7.47%, Book of Meme (BOME) with a 7.04% decline, and Shiba Inu (SHIB), which fell 6.83%.

On March 30, WIF achieved a new all-time high of $4.64. The largest wallet holder, possessing 37.62 million WIF tokens at an average purchase price of $0.32, had not sold any tokens initially. However, recent investigations reveal that this holder has since sold 84% of their holdings, with their average purchase price now at $4.31, reflecting a decline of approximately 21%, according to CoinStats data.

The coming days will be crucial for WIF as traders and analysts closely watch its price movements and market behavior. While some fear a potential disaster, others remain hopeful that the coin will bounce back and regain stability.