Dogwifhat (WIF), the fourth-largest memecoin by market capitalization, has experienced a sharp decline following its recent V-shaped recovery after the market crash on August 5. Since reaching a local high of $1.95 on August 9, WIF has dropped by 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 has lost 16% over the past month, while SHIB and PEPE have dropped by 25% and 36%, respectively. Despite significant losses, WIF has shown impressive year-to-date performance, increasing by 708%.

In the WIF futures market, long liquidations have outpaced shorts, with $6.932 million in long liquidations compared to $3.16 million in shorts. This occurred amid excessive optimism from traders expecting further price increases after August 9, leading to massive liquidations of over-leveraged long positions and further price decline.

Currently, WIF faces additional downside risks, forming a classic head-and-shoulders pattern. As of August 17, WIF was attempting to break below its neckline at $1.46. If WIF manages to reclaim this level as support, it could invalidate the pattern and lead to a price recovery.