Dogwifhat's (CRYPTO: WIF) 20% plunge has traders wondering whether the "hat has to come off."

What Happened: Crypto trader DocXBT noted that Dogwifhat has lost the trend and when such great setups fail, he chooses to not step in. While he suggests having patience currently, he thinks WIF will thrive again in a few months.

Another trader reacted to WIF's drop, saying it is "burn time for the dog." He predicts a plunge below $2.

Crypto trader Bluntz Capital in his latest X post noted a "nice move" on WIF. However, it is not an impulse to rise from the lows. He concluded, "the hat has to come off again unfortunately sorry WIF gang will try again later."

Also Read: What Is Going On With 'Shiba Inu Killer' Dogwifhat?

Why It Matters: Dogwifhat is currently 19.7% down in the past 24 hours, making it the biggest loser on the meme coin board. This takes WIF's past seven-day gains to 23.4%.

Coinglass data shows WIF liquidations spiked to $3.14 million in the past 24 hours, the highest since July 3.

In early July, a crypto trader drew parallels to Dogwifhat's performance with Shiba Inu' in the r's run-up in 2021. The pattern followed is the run-up to billions, a retrace of the bulk of the move (-80%), and consolidation in a huge range (+/- 50%) for months.

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

• Dogwifhat, Pepe Will Do What Shiba Inu Did In 2021 And Run To Multi-Billions, Predicts Trader

Image: Shutterstock