A well-known trader, recognized for his accurate altcoin predictions, believes that a particular memecoin is on the verge of experiencing a significant surge in value.
Referred to as Bluntz, this analyst, who shares insights with over 261,500 followers on the social media platform X, expresses his medium-term bearish view on the meme token dogwifhat (WIF), but remains optimistic about a potential upward movement in the altcoin.
Bluntz points out that WIF is displaying several bullish indicators, hinting at a possible relief rally before resuming its downward trend.
“While I anticipate WIF to eventually reach $1 in the long run, I also foresee a 50% bounce in the near future. We can observe five downward waves from the $4 peak, along with positive divergences on the four-hour, eight-hour, and 12-hour charts. I expect a counter-trend ABC pattern taking the price to approximately $3-3.4, luring investors back in. In my opinion, shorting at these levels would not be advisable.”
Bluntz follows the Elliott Wave theory, a technical analysis method that seeks to forecast future price movements based on crowd psychology displayed in waves. According to this theory, a bearish asset typically undergoes a five-wave decline followed by a three-wave ABC correction upward.
Analyzing the trader’s charts, it appears that WIF has completed its five-wave descent and is now poised for an ABC rebound. However, Bluntz predicts a subsequent drop in WIF’s value to around $1.
At the time of writing, WIF is trading at $2.57.
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Disclaimer: The opinions expressed by The Daily Hodl do not constitute investment advice. Investors are urged to conduct thorough research before engaging in high-risk investments involving Bitcoin, cryptocurrency, or digital assets. Please be aware that all transfers and trades are at your own risk, and any resulting losses are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, and is not a financial advisor. It should be noted that The Daily Hodl engages in affiliate marketing activities.
