Dogwifhat (WIF) , the fourth-largest memecoin by market capitalization,is facing a significant selloff, and has nearly erased its recent V-shaped recovery following the August 5 market crash. Since reaching a local high of approximately $1.95 on August 9, WIF has plummeted by about 30%, trading at $1.37 at the time of writing.

This decline mirrors similar trends across other major memecoins like Dogecoin (DOGE) , Shiba Inu (SHIB) , and Pepe (PEPE) . DOGE, the largest memecoin, has seen a 16% drop over the past month, while SHIB and PEPE lost 25% and 36% respectively. WIF has experienced steeper losses compared to its peers, dropping by a staggering 42% over the past 30 days. Despite these setbacks, WIF had an impressive year-to-date performance, boasting returns of around 708%.

In the WIF futures market, long liquidations have outpaced shorts, with $6.932 million liquidated compared to $3.16 million in shorts. Traders had been overly optimistic, expecting continued price increases post-August 9. As WIF's price fell, margin calls triggered for over-leveraged long positions, forcing automatic liquidations and exacerbating the price drop.

Currently, WIF faces further downside risks, forming a classic head-and-shoulders (H&S) pattern. This pattern features three peaks, with the middle peak higher than the others, and a common support level, or neckline. As of August 17, WIF attempted to break below its H&S neckline at around $1.46.

Conversely, if WIF reclaims the neckline as support and surpasses its accumulation range, it may invalidate the H&S pattern. In this scenario, WIF's immediate targets would be its 50-day and 200-day exponential moving averages.