dailyhodl.com
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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