A well-known trader has raised concerns about a popular Dogecoin rival based on Solana (SOL), stating that the memecoin has the potential for further decline.
In a video shared on the social media platform X, the trader known as Bluntz, with a following of 263,200, revealed that technical indicators suggest the meme token dogwifhat (WIF) could experience additional corrective movements over the next three to four weeks.
According to Bluntz, WIF experienced a 109-day upward trend earlier this year, leading him to predict a similar number of bearish days for the memecoin.
“We are [85] days into the pullback… In terms of time, a 1:1 extension… that takes us out to July.”
Source: Bluntz/X
Regarding his target price for WIF, the trader mentioned that he would consider buying WIF when traders give up, as the memecoin drops to around $1.
“So what I anticipate to happen is we have to keep grinding down. I think the 0.78 [Fibonacci retracement level] is going to get tapped… Ultimately, I think that would be an absolutely killer long-term entry on WIF.”
Bluntz utilizes the Elliott Wave theory, a technical analysis method that aims to forecast future price movements by observing crowd psychology that tends to appear in waves. According to the theory, a bullish asset often experiences a five-wave upward movement followed by a three-wave ABC corrective period.
Reviewing the trader’s chart, it appears that WIF has already completed a five-wave rally and is now in the final stages of an ABC correction.
At the time of writing, WIF is valued at $1.85.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
