Dogwifhat (WIF), one of the Solana (SOL) network’s popular meme cryptocurrencies, has recorded a sharp price decline, partially aligning with the overall market sentiment.

Since hitting its peak in April, WIF has seen a significant decline, leaving traders who bought in at the top facing substantial losses. The cryptocurrency, which was trading at a high of almost $5 in early April, has now plummeted to around $1.40, marking a staggering drop of nearly 75%.

In this line, crypto analyst CrediBull, in an X post on August 4, shared insights on WIF’s current market position. According to CrediBull, the minimum downside target has been hit, but caution is still advised.

Notably, after forming a triple-top pattern—a bearish signal—the price continued its downward trajectory, breaking through key support levels.

Key points from the WIF chart include the triple-top formation, which indicated a likely reversal, and the breach of previous support levels around $2.37, confirming the bearish trend. The 100% target at $1.477 was reached, suggesting that the predicted downside movement has been realized.

Overall, the current sentiment around WIF is cautious. While some traders might see the current price as an opportunity to buy at a discount, the prevailing advice is to wait for a more stable base to form before making any moves. The potential for further decline remains, and jumping in prematurely could result in additional losses.

WIF open interest drop

Indeed, the cautious approach around WIF has been seen in other on-chain metrics. For instance, data shared by TOBTC indicates that since July 27, the open interest for the meme coin has plummeted by 28% to $252.5 million.

The platform noted that traders are anticipating a retest of the critical $1.50 support level due to the ongoing correction. Investors remain wary of a quick rebound, with significant short and long positions at risk.

WIF price analysis

By press time, WIF was trading at $1.40 with 24-hour losses of about 11%. Indeed, on the weekly timeframe, the losses are more pronounced, with the meme coin plunging by over 42%.

In the meantime, if the bearish sentiments are sustained, WIF could drop below the crucial $1 support.

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