Renowned trader Bluntz has sounded the alarm about a well-known Dogecoin rival based on Solana (SOL), suggesting that the memecoin has significant potential for further decline.
In a video shared on the social media platform X, the analyst, who goes by the pseudonym Bluntz, informed his 263,200 followers that technical indicators point to the possibility of the meme token dogwifhat (WIF) experiencing additional corrective movements in the next three to four weeks.
Based on the analyst’s assessment, WIF experienced a 109-day upward trend earlier in the year, leading him to anticipate a similar period of bearish activity 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 downside target price for WIF, the analyst expressed his intention to consider acquiring WIF when traders surrender and the memecoin’s price falls 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 adheres to the Elliott Wave theory, a technical analysis method that seeks to forecast future price movements by observing the crowd psychology that often manifests in waves. According to the theory, a bullish asset typically experiences a five-wave uptrend followed by a three-wave ABC correction period.
Upon reviewing the trader’s chart, it appears that WIF has already completed a five-wave rally and is currently in the final stages of an ABC correction.
At the time of writing, WIF is valued at $1.85.
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