Crypto traders are expressing concerns over Dogwifhat (WIF) as the memecoin faces a significant decline in open interest (OI) and price. Since July 27, WIF has dropped sharply, leading many to speculate that a retest of the critical support level at $1.50 is likely.

As of August 3, Dogwifhat’s OI—representing the total value of all unsettled futures contracts—had fallen to $252.5 million, marking a 28% decrease from $353.4 million just a week prior. Concurrently, WIF traded at $1.67, a steep decline of 35.48% since late July, according to CoinMarketCap data.

Several crypto analysts have highlighted the potential for Dogwifhat to retest the $1.50 level, recently identified as a crucial support point. “WIF, in the daily timeframe, is in a correction phase and is likely to move down toward the lower support trendline between $1.50 and $1.70,” noted Cryptorphic in a recent post. Similarly, another crypto commentator, Scient, indicated that the price is correcting towards the daily support zone.

On April 1, Dogwifhat hit its yearly high in open interest, reaching $615.16 million. Source: CoinGlass

Skepticism among future traders is palpable, with $11.89 million in short positions at risk if the price rebounds to $1.80. Conversely, a further drop to $1.50 would eliminate $7.55 million in long positions.

This recent downturn stands in stark contrast to earlier predictions, such as the ambitious $10 target set by Arthur Hayes, the former CEO of BitMEX, in March. Hayes had asserted, “The hat stays on while I count to $10,” just before WIF reached $3 for the first time.

After briefly dropping out of the top 50 cryptocurrencies by market capitalization, Dogwifhat has rebounded and currently ranks 47th, just above Sui (SUI).