$WIF plunged below $1 today like a failed rocket launch, tumbling 7.5% as memecoin traders braced for deeper losses. This breakdown threatens to drag the entire Solana memecoin sector into freefall.
Just two weeks ago, DogWifHat ($WIF) soared above $1.30, fueling hopes of a $2 rally. Now, with Solana weakening and 166,000 wallets losing their capital, traders face a brutal choice. Will WIF crater to $0.50 or defy gravity with a sharp rebound?
$WIF’s Rapid Drop Sparks Trader Anxiety
The mood around $WIF is split. Some see a further collapse below $0.50, while others bet on a full recovery to double its current price. Recent trends lean bearish, with short sellers gaining momentum.
On June 4, experienced crypto trader Bob Paulus shared a pessimistic outlook on WIF, pointing to a clear downtrend in its daily market structure.
Traders who acted on his short position have seen gains of up to 140%. The broader memecoin slump has also played a role in WIF’s decline.
Sector-wide trading volume has decreased by over 14% in the past day, resulting in a nearly 2% decline in total market capitalization.
Major memecoins, such as $DOGE, $PEPE, and $SHIB, have each lost at least 10% in the last week, reflecting fading momentum.
The market’s current trajectory suggests caution as traders weigh further downside risks against potential rebounds.
Solana Slips Toward $150—What That Means for $WIF and Other Memecoins
Solana’s struggles often dictate the fate of its memecoins, and right now, the signs are worrying. With SOL down more than 12% in the past week and hovering near $150, concerns are growing.
A similar drop below $140 in February led to heavy losses across Solana memecoins, and history may be repeating itself.
Retail interest is also cooling. Data from Dune Analytics shows that while over 217,000 wallets traded Solana memecoins this month, only five made profits above $50,000.
On the other hand, roughly 166,000 wallets were completely wiped out, including one high-profile trader who lost over $1 million.
These trends suggest deepening pessimism in the memecoin market.
As Solana struggles, the tokens built on it face mounting pressure, leaving traders to question whether the downturn will continue or if a reversal is imminent.
“Summer Price Action Is Trash”: Top Binance Trader Goes All-In on Shorts
Matter Trades, currently ranked #2 on Binance’s perpetuals leaderboard, isn’t betting on a turnaround. He’s been building short positions since Bitcoin reached $111,000, citing his belief that summer market conditions are historically poor.
“Summer price action is trash—always has been, always will be,” he said. “Everyone keeps saying this time is different, but it never is.”
According to Matter, the season typically favors sellers, as all pumps are swiftly sold out.
He also expressed skepticism about the recent altcoin hype, warning that macroeconomic factors could worsen market conditions further.
“The U.S. housing market is flashing red flags, reminding me of 2008,” he added. “Bitcoin is a risk asset, and when fear strikes, risk assets are the first to go.”
Bearish Market Structure Indicates Another Leg Down for WIF
From a technical standpoint, the $WIF/$USDT daily chart reflects a bearish structure with more room to fall. After rallying to nearly $1.50 in May, the price has since retraced to around $0.86.
The correction appears to be unfolding in a classic A-B-C pattern, with the price now heading from point (B) toward a potential low at point (C). Support between $0.65 and $0.70, shown by previous breakout levels, could provide a temporary floor.
Unless $WIF sees a strong reversal with rising volume and reclaims the $1.00 mark, the outlook remains bearish. Should the wave structure play out, $WIF could revisit the $0.60–$0.65 range in the near term.
The post $WIF Crashes Below $1: Is This the Beginning of a Full Memecoin Meltdown? appeared first on Cryptonews.
