A widely followed trader is expressing bearish sentiment on a months-old memecoin built on Solana (SOL).
The trader pseudonymously known as Bluntz tells his 253,400 followers on the social media platform X that dogwifhat (WIF) may be due for a correction.
According to the pseudonymous trader who applies the Elliott Wave theory in his technical analysis, WIF appears to have completed a five-wave rally and now looks primed to enter an ABC corrective wave.
The Elliott Wave theory states that a bullish asset tends to witness an ABC correction after completing a five-wave upside move.
Says Bluntz,
“I think the macro 5 [wave] up from inception on WIF might be done here, all waves accounted for and a long drawn out ABC probably underway before the next parabolic leg.”
Based on Bluntz’s charts, it appears that the analyst is forecasting WIF to fall to $1, about 69% below the current price, which also coincides with the 0.786 Fibonacci retracement level. In technical analysis, Fibonacci retracement levels are used to identify potential support and resistance areas.
WIF is trading at $3.32 at time of writing, up by around 69,356% from the December 15th opening price of $0.00478.
Bluntz also offers his forecast on Solana. According to the widely followed trader, a correctional three-wave pattern is underway for Solana that could result in the fifth-largest crypto asset by market cap falling by around 7% from the current level.
“A sweep of $160 seems likely to me before we can think about the next leg up on SOL in my opinion.”
Solana is trading at $172 at time of writing.
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